# EDGAR Filing Document

**Accession Number:** 0001753368
**File Stem:** 0001171843-23-000864
**Filing Date:** 2023-2
**Character Count:** 168974
**Document Hash:** cf5a98129d557e10efb3e2d4f1cd564a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001171843-23-000864.hdr.sgml**: 20230210

**ACCESSION NUMBER**: 0001171843-23-000864

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 7

**CONFORMED PERIOD OF REPORT**: 20230209

**FILED AS OF DATE**: 20230210

**DATE AS OF CHANGE**: 20230209

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Sangoma Technologies Corp
- **CENTRAL INDEX KEY:** 0001753368
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370]
- **IRS NUMBER:** 980642316
- **STATE OF INCORPORATION:** A6
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41175
- **FILM NUMBER:** 23608293

**BUSINESS ADDRESS:**
- **STREET 1:** 100 RENFREW DRIVE, SUITE 100
- **CITY:** MARKHAM
- **STATE:** A6
- **ZIP:** L3R 9R6
- **BUSINESS PHONE:** 800-388-2475

**MAIL ADDRESS:**
- **STREET 1:** 100 RENFREW DRIVE, SUITE 100
- **CITY:** MARKHAM
- **STATE:** A6
- **ZIP:** L3R 9R6

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934**

**For the month of February 2023**

**Commission File Number: 001-41175**

**Sangoma Technologies Corporation**

(Exact name of Registrant as specified in its charter)

**N/A**

(Translation of registrant's name into English)

**100 Renfrew Drive Suite 100 Markham, Ontario, Canada L3R 9R6 (905) 474-1990** 

(Address and telephone number of registrant's principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F [ ] &nbsp;&nbsp;&nbsp;&nbsp; Form 40-F [ X ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): <u>&nbsp;&nbsp;&nbsp;&nbsp;</u> 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): <u>&nbsp;&nbsp;&nbsp;&nbsp;</u> 

**INCORPORATION BY REFERENCE**

Exhibits 99.1 and 99.2 of this Form 6-K is incorporated by reference as an additional exhibit to the registrant's Registration Statement on Form F-10 (File No. 333-261071).

------

**DOCUMENTS INCLUDED AS PART OF THIS REPORT**

---

| | |
|:---|:---|
| <u>**Exhibit**</u> |  |
| [99.1](exh_991.htm) | [Unaudited Condensed Consolidated Interim Financial Statements of the Registrant for the three and six month periods ended December 31, 2022 and 2021](exh_991.htm) |
| [99.2](exh_992.htm) | [Management's Discussion and Analysis of Financial Condition and Results of Operations of the Registrant for the three and six month periods ended December 31, 2022 and 2021](exh_992.htm) |
| [99.3](exh_993.htm) | [Press Release dated February 9, 2023, titled "Sangoma Announces Second Quarter Fiscal 2023 Results"](exh_993.htm) |
| [99.4](exh_994.htm) | [Form 52-109F2 Certificate of Interim Filings by CEO (pursuant to Canadian regulations)](exh_994.htm) |
| [99.5](exh_995.htm) | [Form 52-109F2 Certificate of Interim Filings by CFO (pursuant to Canadian regulations)](exh_995.htm) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Sangoma Technologies Corporation&nbsp;&nbsp;&nbsp;&nbsp;** | **Sangoma Technologies Corporation&nbsp;&nbsp;&nbsp;&nbsp;** |
| Date: February 9, 2023 | By: | <u>/s/ Larry Stock</u> |
|  |  | Name: Larry Stock |
|  |  | Title: Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![](logo.jpg)

**SANGOMA TECHNOLOGIES CORPORATION**

**Condensed consolidated interim financial statements for**

**the three and six month periods ended December 31, 2022 and 2021**

**(Unaudited in thousands of US Dollars)**

**100 Renfrew Drive, Suite 100,** 

**Markham, Ontario, Canada L3R 9R6**

**Sangoma Technologies Corporation**

December 31, 2022 and 2021

Table of contents

---

| | |
|:---|:---|
| [Condensed consolidated interim statements of financial position](#a_001) | [3](#a_001) |
| [Condensed consolidated interim statements of loss and comprehensive loss](#a_002) | [4](#a_002) |
| [Condensed consolidated interim statements of changes in shareholders' equity](#a_003) | [5](#a_003) |
| [Condensed consolidated interim statements of cash flows](#a_004) | [6](#a_004) |
| [Notes to the condensed consolidated interim financial statements](#a_005) | [7-27](#a_005) |

---

**Sangoma Technologies Corporation**

Condensed consolidated interim statements of financial position

As at December 31, 2022 and June 30, 2022

(Unaudited in thousands of US dollars, except per share data)

---

| |
|:---|
| **Assets** |
| Current assets |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents (Note 4) |
| &nbsp;&nbsp;&nbsp;Trade and other receivables (Note 4, 20) |
| &nbsp;&nbsp;&nbsp;Inventories (Note 6) |
| &nbsp;&nbsp;&nbsp;Income tax receivable |
| &nbsp;&nbsp;&nbsp;Contract assets |
| &nbsp;&nbsp;&nbsp;Derivative assets (Note 15) |
| &nbsp;&nbsp;&nbsp;Other current assets |
| Non-current assets |
| &nbsp;&nbsp;&nbsp;Property and equipment (Note 7) |
| &nbsp;&nbsp;&nbsp;Right-of-use assets (Note 8) |
| &nbsp;&nbsp;&nbsp;Intangible assets (Note 9) |
| &nbsp;&nbsp;&nbsp;Development costs (Note 10) |
| &nbsp;&nbsp;&nbsp;Deferred income tax assets |
| &nbsp;&nbsp;&nbsp;Goodwill (Note 12) |
| &nbsp;&nbsp;&nbsp;Contract assets |
| &nbsp;&nbsp;&nbsp;Derivative assets (Note 15) |
| &nbsp;&nbsp;&nbsp;Other non-current assets |
| **Liabilities** |
| Current liabilities |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities (Note 4) |
| &nbsp;&nbsp;&nbsp;Provisions (Note 13) |
| &nbsp;&nbsp;&nbsp;Sales tax payable |
| &nbsp;&nbsp;&nbsp;Income tax payable |
| &nbsp;&nbsp;&nbsp;Consideration payable (Note 14) |
| &nbsp;&nbsp;&nbsp;Operating facility and loans (Note 15) |
| &nbsp;&nbsp;&nbsp;Contract liabilities (Note 16) |
| &nbsp;&nbsp;&nbsp;Lease obligations on right-of-use assets (Note 8) |
| Long term liabilities |
| &nbsp;&nbsp;&nbsp;Consideration payable (Note 14) |
| &nbsp;&nbsp;&nbsp;Operating facility and loans (Note 15) |
| &nbsp;&nbsp;&nbsp;Contract liabilities (Note 16) |
| &nbsp;&nbsp;&nbsp;Non-current lease obligations on right-of-use assets (Note 8) |
| &nbsp;&nbsp;&nbsp;Deferred income tax liabilities |
| &nbsp;&nbsp;&nbsp;Other non-current liabilities |
| **Shareholders' equity** |
| &nbsp;&nbsp;&nbsp;Share capital |
| &nbsp;&nbsp;&nbsp;Shares to be issued |
| &nbsp;&nbsp;&nbsp;Contributed surplus |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income |
| &nbsp;&nbsp;&nbsp;Deficit |
| Subsequent events (Notes 17(i) and Note 21) |

---

---

| | | |
|:---|:---|:---|
| Approved by the Board | Approved by the Board |  |
| (Signed) | Al Guarino | Director |
| (Signed) | Allan Brett | Director |

---

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

**Sangoma Technologies Corporation**

Condensed consolidated interim statements of loss and comprehensive loss

For the three and six month periods ended December 31, 2022 and 2021

(Unaudited in thousands of US dollars, except per share data)

---

| |
|:---|
| **Revenue (Note 19)** |
| Cost of sales |
| Gross profit |
| Expenses |
| &nbsp;&nbsp;&nbsp;Sales and marketing |
| &nbsp;&nbsp;&nbsp;Research and development |
| &nbsp;&nbsp;&nbsp;General and administration |
| &nbsp;&nbsp;&nbsp;Foreign currency exchange (gain) loss**))** |
| Loss before interest expense (net), business integration costs, |
| gain on change in fair value of consideration payable |
| &nbsp;&nbsp;&nbsp;and income taxes**)**)**)** |
| Interest expense (net) (Notes 4, 8, 14, 15) |
| Business integration costs |
| Exchange listing expense |
| (Gain) loss on change in fair value of consideration payable (Note 14)**))** |
| Loss before income tax**))** |
| Provision for (recovery of) income taxes |
| &nbsp;&nbsp;&nbsp;Current (Note 11) |
| &nbsp;&nbsp;&nbsp;Deferred (Note 11)**))** |
| **Net loss)**)**)** |
| Other comprehensive income (loss) |
| Items to be reclassified to net income (loss) |
| &nbsp;&nbsp;&nbsp;Change in fair value of interest rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;swaps, net of tax (Note 15) |
| **Comprehensive loss)**)**)** |
| **Loss per share** |
| &nbsp;&nbsp;&nbsp;Basic (Note 17(iii))**))** |
| &nbsp;&nbsp;&nbsp;Diluted (Note 17(iii))**))** |
| **Weighted average number** |
| &nbsp;&nbsp;&nbsp;**of shares outstanding (Note 17(iii))** |
| &nbsp;&nbsp;&nbsp;Basic |
| &nbsp;&nbsp;&nbsp;Diluted |

---

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

**Sangoma Technologies Corporation**

Condensed consolidated interim statements of changes in shareholders' equity

For the six month periods ended December 31, 2022 and 2021

(Unaudited in thousands of US dollars, except per share data)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Number of<br>common<br>shares |<br>Share<br>capital | Shares<br>to be<br>issued |<br>Contributed<br>surplus | Accumulated other<br>comprehensive<br>income (loss) | Total<br>shareholders'<br>equity |
|  | | $ | $ | $ | $ | $ |
| Balance, July 1, 2021 | 19021642) |  |  |  |  |  |
| Net loss | -) |  |  |  |  |  |
| Change in fair value of interest rate swaps, |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; net of tax (Note 15) |  |  |  |  |  |  |
| Deferred tax benefit on share issuance costs (Note 11) |  |  |  |  |  |  |
| Common shares issued |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; for options exercised (Note 17(i)) | 39594) |  |  |  |  |  |
| Rounding of fractional shares |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; after share consolidation | (28) |  |  |  |  |  |
| Share-based compensation expense (Note 17(ii)) | - |  |  |  |  |  |
| **Balance, December 31 2021** | **19061208)** |  |  |  |  |  |
| Balance, July 1, 2022 | 21439632) |  |  |  |  |  |
| Net loss | -) |  |  |  |  |  |
| Change in fair value of interest rate swaps, |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; net of tax (Note 15) |  |  |  |  |  |  |
| Common shares issued |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; as instalment for shares to be issued (Note 17(i)) | 1838458) |  |  |  |  |  |
| Common shares issued |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; for options exercised (Note 17(i)) | 9234) |  |  |  |  |  |
| Common shares |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; purchased and cancelled (Note 17(i)) | (78822) |  |  |  |  |  |
| Common shares |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; returned from escrow (Note 4) | (142124) |  |  |  |  |  |
| Share-based compensation expense (Note 17(ii)) | - |  |  |  |  |  |
| **Balance, December 31, 2022** | **23066378** |  |  |  |  |  |

---

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

**Sangoma Technologies Corporation**

Condensed consolidated interim statements of cash flows

For the six month periods ended December 31, 2022 and 2021

(Unaudited in thousands of US dollars, except per share data)

---

| | | |
|:---|:---|:---|
|  | **Six month periods ended <br> December 31** | **Six month periods ended <br> December 31** |
| | **2022** | 2021 |
| **Operating activities** |  |  |
| &nbsp;&nbsp;&nbsp; Net loss |  |  |
| &nbsp;&nbsp;&nbsp; Adjustments for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation of property and equipment (Note 7) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation of right-of-use assets (Note 8) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets (Note 9) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of development costs (Note 10) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (Note 11) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax paid |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense (Note 17(ii)) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on obligation on right-of-use assets (Note 8) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized foreign exchange gain (loss) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion expense (Note 14) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on lease modification (Note 8) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposal of property and equipment (Note 7) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Gain) loss on change in fair value of consideration payable (Note 14) |  |  |
| &nbsp;&nbsp;&nbsp; Changes in working capital |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade receivables |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax receivable |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales tax payable |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non current liabilites |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities |  |  |
| **Net cash flows from operating activities** |  |  |
| **Investing activities** |  |  |
| &nbsp;&nbsp;&nbsp; Purchase of property and equipment (Note 7) |  |  |
| &nbsp;&nbsp;&nbsp; Development costs (Note 10) |  |  |
| &nbsp;&nbsp;&nbsp; Business combinations, net of cash and cash |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; equivalents acquired (Note 20) |  |  |
| **Net cash flows used in investing activities** |  |  |
| **Financing activities** |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from operating facility and loan (Note 15) |  |  |
| &nbsp;&nbsp;&nbsp; Repayments of operating facility and loan (Note 15) |  |  |
| &nbsp;&nbsp;&nbsp; Repayment of right-of-use lease obligation (Note 8) |  |  |
| &nbsp;&nbsp;&nbsp; Common shares purchased and cancelled (Note 17(i)) |  |  |
| &nbsp;&nbsp;&nbsp; Issuance of common shares for stock options exercised (net) (Note 17(i)) |  |  |
| **Net cash flows used in financing activities** |  |  |
| Decrease in cash and cash equivalents |  |  |
| Cash and cash equivalents, beginning of the period |  |  |
| **Cash and cash equivalents, end of the period** |  |  |

---

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

1. General information

Founded in 1984, Sangoma Technologies Corporation ("Sangoma" or the "Company") is publicly traded on the Toronto Stock Exchange (TSX: STC) and NASDAQ (NASDAQ: SANG). The Company's shares were traded on the TSX Venture Exchange under the symbol STC until November 1, 2021, at which point the Company's shares commenced trading on the TSX. In conjunction with listing on the TSX, the Company's shares were delisted from the TSX Venture Exchange. The Company's shares commenced trading on NASDAQ on December 16, 2021. The Company was incorporated in Canada, its legal name is Sangoma Technologies Corporation and its primary operating subsidiaries for fiscal 2023 are Sangoma Technologies Inc., Sangoma US Inc., VoIP Supply LLC, Digium Inc., VoIP Innovations LLC, Star2Star Communications LLC, and NetFortris Corporation.

Sangoma is a leading provider of hardware and software components that enable or enhance Internet Protocol Communications Systems for both telecom and datacom applications. Enterprises, small to medium sized businesses ("SMBs") and telecom operators in over 150 countries rely on Sangoma's technology as part of their mission critical infrastructures. The product line includes data and telecom boards for media and signal processing, as well as gateway appliances and software.

The Company is domiciled in Ontario, Canada. The address of the Company's registered office is 100 Renfrew Dr., Suite 100, Markham, Ontario, L3R 9R6 and the Company operates in multiple jurisdictions.

2. Significant accounting policies

*Statement of compliance and basis of presentation*

These interim financial statements for the three and six month periods ended December 31, 2022 and 2021 have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB").

These interim financial statements do not include all of the disclosures required by International Financial Reporting Standards ("IFRS") for annual consolidated financial statements and accordingly should be read in conjunction with the Company's audited consolidated financial statements for the year ended June 30, 2022 ("annual financial statements") prepared in accordance with IFRS as issued by the IASB.

During the fourth quarter ended June 30, 2022, the Company identified an inconsistency in its treatment of certain revenues being recorded gross versus net. As a result, the Company corrected the presentation of revenue in its annual consolidated financial statements for the year ended June 30, 2022. As indicated in our management discussion & analysis for the fourth quarter ended June 30, 2022 (the "Fiscal 2022 MD&A"), the impacts of these changes to each quarter of fiscal 2022 were not material. In these unaudited condensed consolidated interim financial statements, the comparative periods have been reclassified for these changes. As a result, revenue, gross margin and sales and marketing expense have been reduced by $1,050 and $2,030 in the three and six month periods ended December 31, 2021 as compared to amounts previously reported. The impact of this change had no impact on net loss or cash flow from operations for the comparative periods.

The condensed consolidated interim financial statements were authorized for issue by the Board of Directors on February 9, 2023.

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

3. Significant accounting judgments, estimates and uncertainties

These unaudited condensed consolidated interim financial statements were prepared using the same basis of presentation, accounting policies and methods of computation as those of the audited consolidated financial statements for the year ended June 30, 2022. They were prepared using the same critical estimates and judgments in applying the accounting policies as those of the audited consolidated financial statements for the year ended June 30, 2022, except for the following which are new in 2022.

On December 13, 2022, the Company adopted the Omnibus Equity Incentive Plan (the "Plan"). Under the Plan, the Company may grant participants Options, Performance Share Units (PSUs), Restricted Share Units (RSUs) and Deferred Share Units (DSUs). The PSUs, RSUs and DSUs are redeemable either for one common share or for an amount in cash equal to the fair market value of one common share (at the option of the Company and as set out in the participant's equity award agreement). All PSUs, RSUs and DSUs are accounted for as equity-settled awards.

DSUs generally vest immediately and become redeemable once a director no one longer serves on the board of the Company. RSUs vest over a three-year period after the date of grant. The expense is measured based on the fair value of the awards at the grant date.

PSUs vest in full at the end of a three-year period and the final amount is based 50% on market-based performance targets being met and 50% on non-market-based performance targets, with the conversion ratio for vested PSUs being from 0% to 150%. The expense related to the PSUs is measured (i) based on the fair value of the awards at the grant date using the Monte Carlo simulation, with respect to the 50% based on the market-based performance targets, and (ii) based on the fair value of the awards at the grant date using the volume weighted average trading price per share on the TSX during the immediately preceding five trading days.

The preparation of the interim financial statements requires Management to make judgments, estimates and assumptions that affect the application of accounting policies and reported assets, liabilities, revenue and expenses, consistent with those described in the Company's annual financial statements and as described in these interim financial statements. Estimates and underlying assumptions are reviewed on an ongoing basis. Estimates are based on historical experience and other assumptions that are considered reasonable in the circumstances. The actual amount or values may vary in certain instances from the assumptions and estimates made. Changes will be recorded, with the corresponding effect on profit or loss, when, and if, better information is obtained.

**4.** **Financial instruments** 

The fair values of the cash and cash equivalents, trade and other receivables, derivative assets, contract assets, other current assets, accounts payable and accrued liabilities, consideration payable and derivative liabilities approximate their carrying values due to the relatively short-term nature of these financial instruments or as these financial instruments are fair valued at each reporting period. The fair values of operating facility and loans approximate their carrying values due to variable interest loans or fixed rate loan, which represent market rate.

Cash and cash equivalents are comprised of:

---

| | | | |
|:---|:---|:---|:---|
|  | | June 30 | June 30 |
| | **December 31**<br>**2022** | 2022 | 2022 |
|  |  | $— | $|
| Cash at bank and on hand |  |  | 12702 |

---

Cash includes demand deposits with financial institutions and cash equivalents consist of short-term, highly liquid investments purchased with original maturities of three months or less. As at December 31, 2022 and June 30, 2022 the Company had no cash equivalents.

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

4. Financial instruments

Total interest income and interest expense for financial assets or financial liabilities that are not at fair value through profit or loss can be summarized as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three month periods ended** | **Three month periods ended** | **Six month periods ended** | **Six month periods ended** |
|  | **December 31** | **December 31** | **December 31** | **December 31** |
| | **2022** | 2021 | **2022** | 2021 |
|  |  |  | $— | $|
| Interest income**))** |  |  |  |  |
| Interest expense (Note 15) |  |  |  | 1036 |
| Accretion expense (Notes 8, 14) |  |  |  | 217 |
| Interest expense (net) |  |  |  | 1253 |

---

The Company examines the various financial instrument risks to which it is exposed and assesses the impact and likelihood of those risks. These risks may include credit risk, liquidity risk, foreign currency risk, interest rate risk and market risk.

*Credit risk*

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its obligations. Where possible, the Company uses an insurance policy with Export Development Canada ("EDC") for its trade receivables to manage this risk and minimize any exposure.

---

| | | | |
|:---|:---|:---|:---|
|  | | June 30 | June 30 |
| | **December 31**<br>**2022** | 2022 | 2022 |
|  |  | $— | $|
| Trade receivables |  |  | 16045 |
| Receivable related to working capital adjustment (Note 20) |  |  | 7898 |
| Trade and other receivables |  |  | 23943 |

---

During the period ended December 31, 2022, the parties finalized the working capital provision in respect of the acquisition of NetFortris and the company received $2,052 from the escrow account, consisting of $350 in cash and $1,702 in the form of 142,124 common shares. The remaining balance of $5,846 as at December 31, 2022 relates to certain indemnification assets recorded in respect of liabilities assumed on the acquisition of Netfortris. (June 30, 2022-$7,898)

The Company's maximum exposure to credit risk for its trade receivables is summarized as follows with some of the over 90-day receivable not being covered by EDC:

---

| |
|:---|
| Trade receivables aging: |
| 0-30 days |
| 31-90 days |
| Greater than 90 days |
| Expected credit loss provision |

---

The movement in the provision for expected credit losses can be reconciled as follows:

---

| |
|:---|
| Expected credit loss provision: |
| Expected credit loss provision, beginning balance**)** |
| Net change in expected credit loss provision during the period |
| Expected credit loss provision, ending balance |

---

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

4. Financial instruments

The Company applies the simplified approach to provide for expected credit losses as prescribed by IFRS 9, which permits the use of the lifetime expected loss provision for all trade receivables and contract assets. The expected credit loss provision is based on the Company's historical collections and loss experience and incorporates forward-looking factors, where appropriate.

Substantially all of the Company's cash and cash equivalents are held with major Canadian or US financial institutions and thus the exposure to credit risk is considered insignificant. Management actively monitors the Company's exposure to credit risk under its financial instruments, including with respect to trade receivables.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its obligations associated with financial liabilities. The Company has a planning and budgeting process in place by which it anticipates and determines the funds required to support its normal operating requirements. The Company coordinates this planning and budgeting process with its financing activities through its capital management process.

The Company holds sufficient cash and cash equivalents and working capital, maintained through stringent cash flow management, to ensure sufficient liquidity is maintained. The following are the undiscounted contractual maturities of significant financial liabilities of the Company as at December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **within 12 months** | **12-24 months** | **24-36 months** | **>36 months** | **Total** |
|  | $ | $ | $ | $ | **$** |
| Accounts payable and accrued liabilities | 23819 | **-** | **-** | **-** | **23819** |
| Sales tax payable | 5759 | **-** | **-** | **-** | **5759** |
| Consideration payable | 10252 | 627 | 627 | 261 | **11767** |
| Operating facility and loans | 17700 | 17700 | 22775 | 40600 | **98775** |
| Lease obligations on right of use assets | 3556 | 3101 | 2716 | 8458 | **17831** |
| Other non-current liabilities | - | - | - | 995 | **995** |
|  | **61086** | **21428** | **26118** | **50314** | **158946** |

---

Foreign currency risk

A portion of the Company's transactions occur in a foreign currency (Canadian Dollars (CAD), Euros (EUR), and Great British Pounds (GBP), Hong Kong Dollars (HKD), Indian Rupees (INR), Philippine Peso (PHP), Australian Dollar (AUD)) and, therefore, the Company is exposed to foreign currency risk at the end of the reporting period through its foreign denominated cash, trade receivables, contract assets, accounts payable and accrued liabilities, and operating facility and loans. As at December 31, 2022, a 10% depreciation or appreciation of the CAD, EUR, GBP, HKD, INR, PHP, and AUD currencies against the U.S. dollar would have resulted in an approximate $71 (June 30, 2022 - $59) increase or decrease, respectively, in total comprehensive loss.

Interest rate risk

The Company's exposure to interest rate fluctuations is with its credit facility (Note 15) which bears interest at a floating rate. As at December 31, 2022, a change in the interest rate of 1% per annum would have an impact of approximately $463 (December 31, 2021 - $568) per annum in finance costs. The Company also entered an interest rate swap arrangement for its loan facility (Note 15) to manage the exposure to changes in LIBOR-rate based interest rate. The fair value of the interest rate swaps was estimated based on the present value of projected future cash flows using the LIBOR forward rate curve. The model used to value the interest rate swaps included inputs of readily observable market data, a Level 2 input. As described in detail in Note 15, the fair value of the interest rate swaps was a current asset of $1,245 and non-current asset of $984 on December 31, 2022 (June 30, 2022- current asset $648 and non-current asset of $700).

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

5. Capital management

The Company's objectives in managing capital are to safeguard the Company's assets, to ensure sufficient liquidity to sustain the future development of the business via advancement of its significant research and development efforts, to conservatively manage financial risk and to maximize investor, creditor, and market confidence. The Company considers its capital structure to include its shareholders' equity and operating facilities and loans. Working capital is optimized via stringent cash flow policies surrounding disbursement, foreign currency exchange and investment decision-making. There have been no changes in the Company's approach to capital management during the year and apart from the financial covenants as discussed in Note 15, the Company is not subject to any other capital requirements imposed by external parties.

6. Inventories

Inventories recognized in the condensed consolidated interim statements of financial position are comprised of:

---

| |
|:---|
| Finished goods |
| Parts |
| Provision for obsolescence |
| Net inventory carrying value |

---

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

7. Property and equipment

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Office furniture <br> and computer <br> equipment** | **Software and <br> books** | **Stockroom <br> and production <br> equipment** | **Tradeshow <br> equipment** | **Leasehold <br> improvements** | **Total** |
| **Cost** | $ | $ | $ | $ | $ | $ |
| Balance at July 1, 2021 |  |  |  | 47 |  |  |
| Additions through business combinations (Note 20) |  |  |  |  |  |  |
| Additions |  |  |  |  |  |  |
| Disposals |  |  |  | - |  |  |
| Balance at June 30, 2022 |  |  |  | **47** |  |  |
| Additions |  |  |  |  |  |  |
| Disposals |  |  |  | - |  |  |
| **Balance at December 31, 2022** |  |  |  | **47** |  |  |
| **Accumulated depreciation** |  |  |  |  |  |  |
| Balance at July 1, 2021 |  |  |  | 41 |  |  |
| Depreciation expense |  |  |  | 6 |  |  |
| Disposals |  |  |  | - |  |  |
| Balance at June 30, 2022 |  |  |  | **47** |  |  |
| Depreciation expense |  |  |  | - |  |  |
| **Balance at December 31, 2022** |  |  |  | **47** |  |  |
| Net book value as at: |  |  |  |  |  |  |
| Balance at June 30, 2022 |  |  |  |  |  |  |
| **Balance at December 31, 2022** |  |  |  | - |  |  |

---

For the three and six month periods ended December 31, 2022, depreciation expenses of $261 and $524 (three and six month periods ended December 31, 2021 - $247 and $496) were recorded in general and administration expense in the condensed consolidated interim statements of loss and comprehensive loss. Depreciation expenses in the amounts of $932 and $1,975 were included in cost of sales for the three and six month periods ended December 31, 2022 (three and six month periods ended December 31, 2021 - $294 and $488).

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

8. Leases: Right-of-use assets and lease obligations

The Company's lease obligations and right-of-use assets are presented below:

---

| | |
|:---|:---|
| | **Right-of-use assets** |
| Balance at July 1, 2021 |  |
| Additions |  |
| Addition through business combination (Note 20) |  |
| Terminations |  |
| Adjustments due to lease modification |  |
| Balance at June 30, 2022 |  |
| Additions |  |
| Terminations |  |
| **Balance at December 31, 2022** |  |
| **Accumulated depreciation and repayments** |  |
| Balance at July 1, 2021 |  |
| Depreciation expense |  |
| Terminations |  |
| Balance at June 30, 2022 |  |
| Depreciation expense |  |
| Terminations |  |
| **Balance at December 31, 2022** |  |
| **Net book value as at:** |  |
| June 30, 2022 |  |
| **December 31, 2022** |  |
| Balance at July 1, 2021 |  |
| Additions |  |
| Addition through business combination (Note 20) |  |
| Adjustments due to lease modification |  |
| Repayments |  |
| Accretion expense |  |
| Effects of movements on exchange rates |  |
| Balance at June 30, 2022 |  |
| Additions |  |
| Adjustments due to lease modification |  |
| Repayments |  |
| Accretion expense |  |
| Effects of movements on exchange rates |  |
| **Balance at December 31, 2022** |  |
| **Lease Obligations - Current** |  |
| **Lease Obligations - Non-current** |  |

---

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

9. Intangible assets

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| |<br>**Purchased**<br>**technology** |<br>**Customer**<br>**relationships** |<br>**Brand** | **Other**<br>**purchased**<br>**intangibles** |<br>**Total** |
|  | $ | $ | $ | $ | $ |
| **Cost** |  |  |  |  |  |
| Balance at July 1, 2021 | 95323 | 112256 | 6787 | 2748 | 217114 |
| Business combinations (Note 20) | 14800 | 14200 | - | - | 29000 |
| Balance at June 30, 2022 | 110123 | 126456 | 6787 | 2748 | 246114 |
| **Balance at December 31, 2022** | **110123** | **126456** | **6787** | **2748** | **246114** |
| **Accumulated amortization** |  |  |  |  |  |
| Balance at July 1, 2021 | 7809 | 11336 | 2135 | 1856 | 23136 |
| Amortization expense | 16097 | 14128 | 685 | 699 | 31609 |
| Balance at June 30, 2022 | 23906 | 25464 | 2820 | 2555 | 54745 |
| Amortization expense | 8903 | 7774 | 405 | 73 | 17155 |
| **Balance at December 31, 2022** | **32809** | **33238** | **3225** | **2628** | **71900** |
| **Net book value as at:** |  |  |  |  |  |
| Balance at June 30, 2022 | 86217 | 100992 | 3967 | 193 | 191369 |
| **Balance at December 31, 2022** | **77314** | **93218** | **3562** | **120** | **174214** |

---

Amortization expense is included in general and administration expense in the consolidated interim statements of loss and comprehensive loss. For the three and six month periods ended December 31, 2022, amortization expenses were $8,578 and $17,155 (three and six month periods ended December 31, 2021 - $7,644 and $15,298).

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

10. Development costs

---

| |
|:---|
| **Cost** |
| &nbsp;&nbsp;&nbsp;Balance at July 1, 2021 |
| &nbsp;&nbsp;&nbsp;Additions |
| &nbsp;&nbsp;&nbsp;Investment tax credits |
| &nbsp;&nbsp;&nbsp;Balance at June 30, 2022 |
| &nbsp;&nbsp;&nbsp;Additions |
| &nbsp;&nbsp;&nbsp;Investment tax credits |
| &nbsp;&nbsp;&nbsp;**Balance at December 31, 2022** |
| **Accumulated amortization** |
| &nbsp;&nbsp;&nbsp;Balance at July 1, 2021) |
| &nbsp;&nbsp;&nbsp;Amortization |
| &nbsp;&nbsp;&nbsp;Balance at June 30, 2022) |
| &nbsp;&nbsp;&nbsp;Amortization |
| &nbsp;&nbsp;&nbsp;**Balance at December 31, 2022** |

---

---

| | | | |
|:---|:---|:---|:---|
| | **December 31, 2022** | June 30, 2022 | June 30, 2022 |
|  |  | $— | $|
| Net capitalized development costs |  |  | 2861 |

---

Each period, additions to development costs are recognized net of investment tax credits accrued. In addition to the above amortization, the Company has recognized $8,625 and $17,632 of engineering expenditures as expenses during the three and six month periods ended December 31, 2022 (three and six month periods ended December 31, 2021 - $7,419 and $15,604).

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

11. Income tax

The Company income tax expense is determined as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three month periods ended** | **Three month periods ended** | **Six month periods ended** | **Six month periods ended** |
|  | **December 31** | **December 31** | **December 31** | **December 31** |
| | **2022** | **2021** | **2022** | **2021** |
| Statutory income tax rate |  |  |  |  |
| Net loss before income taxes |  |  |  |  |
| Expected income tax expense |  |  |  |  |
| Difference in foreign tax rates |  |  |  |  |
| Share based compensation |  |  |  |  |
| Other non deductible expenses |  |  |  |  |
| Change in estimates |  |  |  |  |
| Scientific Research and Experimental Development (SR&ED) |  |  |  |  |
| Sec 481(a) adjustment |  |  |  |  |
| Gain on consideration payable |  |  |  |  |
| Stock options deduction revaluation adjustment |  |  |  |  |
| Earn-out amortization |  |  |  |  |
| Changes in tax benefits not recognized |  |  |  |  |
| **Income tax expense** |  |  |  |  |
| The Company's income tax expense is allocated as follows: |  |  |  |  |
| Current tax expense |  |  |  |  |
| Deferred income tax expense |  |  |  |  |
| **Income tax expense** |  |  |  |  |

---

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

12. Goodwill

The carrying amount and movements of goodwill was as follows:

---

| |
|:---|
| Balance at July 1, 2021 |
| Addition through business combinations (Note 20) |
| Goodwill Impairment) |
| Balance at June 30, 2022 |
| **Balance at December 31, 2022** |

---

For the three and six month periods ended December 31, 2022, there is no addition to goodwill. The company has evaluated for triggers of impairment at December 31, 2022 and has not identified any impairment.

13. Provisions

---

| |
|:---|
| Balance at July 1, 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional provision recognized (reversed) |
| Balance at June 30, 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional provision recognized (reversed) |
| **Balance at December 31, 2022** |

---

The provision for warranty obligations represents the Company's best estimate of repair and/or replacement costs to correct product failures. The sales returns and allowances provision represent the Company's best estimate of the value of the products sold in the current financial period that may be returned in a future period. The stock rotation provision represents the Company's best estimate of the value of the products sold in the current financial period that may be exchanged for alternative products in a future period. The Company accrues for product warranties, stock rotation, and sales returns and allowances at the time the product is delivered.

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

**14.** **Consideration payable** 

As described in the annual consolidated financial statements, additional consideration in the amount of $13,269 could be payable as part of the acquisition of Star2Star on March 31, 2021. The fair value of consideration payable as of December 31, 2022 in the amount of $4,204 (June 30, 2022 - $6,017) was determined using an effective tax rate of 26.22% (June 30, 2022 – 26.22%) and a discount rate of 4.9% (June 30, 2022 – 4.9%). The fair value of the consideration payable is dependent upon the Company's share price, foreign exchange rates and the Company's ability to utilize the underlying tax losses as they become available in each reporting period. During the period ended December 31, 2022, the Company made payments of $nil (December 31, 2021-$nil). For the three and six month periods ended December 31, 2022, the company recognized accretion expense of $59 and $118 (three and six month periods ended December 31, 2021-$nil), and recognized a gain on change in fair value of $350 and $1,931 (three and six month periods ended December 31, 2021 – gain of $143 and loss of $104).

As described in Note 20, additional consideration of up to $11,500 could be payable as part of the acquisition of NetFortris Corporation. The fair value of consideration payable as of December 31, 2022 in the amount of $6,984 (June 30, 2022-$6,751) was determined using a discount rate of 13.0% (June 30, 2022-13.0%). The fair value of the consideration payable is dependent upon the Company's ability to meet certain operating targets as specified in the acquisition agreement. During the period ended December 31, 2022, the Company made payments of $nil (December 31, 2021- $nil). For the three and six month periods ended December 31, 2022, the Company recognized accretion expenses of $117 and $233 (three and six month periods ended December 31, 2021-$nil), and recognized a loss on change in fair value of $nil (three and six month periods ended December 31, 2021 - $nil).

The fair value of consideration payable as at December 31, 2022 is summarized below:

---

| |
|:---|
| Opening balance, July 1, 2021 |
| Additions through business combination (Note 20) |
| Payments) |
| Accretion value of earn out (Note 4) |
| Gain on change in fair value |
| Ending balance, June 30, 2022 |
| Accretion value of earn out (Note 4) |
| Gain on change in fair value |
| **Ending balance, December 31, 2022** |
| **Consideration payable - Current** |
| **Consideration payable - Non-current** |

---

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

15. Operating facility and loan and derivative assets and liabilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *Operating facility and loan* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company entered into a new loan facility with two banks and drew down the first tranche of $34,800
(CAD$45,699) on October 18, 2019. This new loan facility was used to pay down and close all existing loans and to fund part of the purchase
of VoIP Innovations LLC. This term facility is repayable over six years on a straight-line basis.

The interest rates charged are based on Prime rate, US Base rate, London Inter-Bank Offered Rate (LIBOR) or Canadian Dollar Offered Rate (CDOR) plus the applicable margin. Under the terms of these term facilities, the Company may convert the loans from variable to a fixed loan. The Company is required to lock in the interest rate on one half of the term loan within three months of each draw down. On January 21, 2020, the Company converted its US Base Rate loan to a one-month LIBOR loan plus the credit spread based on the syndicated loan agreement entered on October 18, 2019. Separately, as required under the agreement, the Company locked in half of the original loan amount by entering a 5-year interest rate credit swap with the two banks for $8.70 each. On March 28, 2022 the credit agreement was amended and the LIBOR rate was replaced with the Secured Overnight Financing Rate (SOFR). The repayment schedule for the loan has not been impacted by these changes. The balance outstanding against this term loan facility as of December 31, 2022 is $15,950 (June 30, 2022- $18,850). As at December 31, 2022, term loan facility balance of $5,800 (June 30, 2022- $5,800) is classified as current and $10,150 (June 30, 2022 - $13,050) as long-term in the condensed consolidated interim statements of financial position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) On March 31, 2021, the Company amended its term loan facility with its lenders and drew down an additional
$52,500 to fund part of the acquisition of StarBlue Inc. At the time of the draw down of the additional amounts, the following amendments
were made to the agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The provision for additional funding related to VoIP Innovations under the original agreement was no longer
necessary and has been cancelled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The swingline facility was converted from CAD $2,000 to USD $1,500

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The revolver facility was converted from CAD $8,000 to USD $6,000

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The debt to equity ratio calculation now allows the Company to offset up to $10,000 of unrestrained funds
against the outstanding amount of the debt.

The interest rates charged continue to be based on Prime rate, US Base rate, London Inter-Bank Offered Rate (LIBOR) or Canadian Dollar Offered Rate (CDOR) plus the applicable margin until March 28, 2022 when the LIBOR rate was replaced with the Secured Overnight Financing Rate (SOFR). The incremental draw is repayable, on a straight-line basis, through quarterly payments of $2,188 and is due to mature on October 18, 2024. As at December 31, 2022, $8,750 (June 30, 2022 - $8,750) of the incremental facility is classified as current and $28,438 (June 30, 2022 - $32,812) is classified as long-term in the condensed consolidated interim statements of financial position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) On March 28, 2022, the Company amended its term loan facility with its lenders and drew down an additional
$45,000 to fund part of the acquisition of NetFortris Corporation. At the time of the draw down of the additional amounts, the following
amendments were made to the agreement:

The interest rates charged is based on Prime Rate Loans, US Base Rate Loans, US Prime Rate Loans, Secured Overnight Financing Rate (SOFR) or Canadian Dollar Offered Rate (CDOR) plus the applicable margin. The incremental draw is repayable, on a straight-line basis, through quarterly payments of $1,875 and is due to mature on March 28, 2027. On June 28, 2022, the Company amended its term loan facility with its lenders, the amended repayment for the first twelve quarterly payments of $788 and $2,963 thereafter.

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

15. Operating facility and loan and derivative assets and liabilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *Operating facility and loan* 

As at December 31, 2022, $3,150 (June 30, 2022-$3,150) of the incremental facility is classified as current and $39,487 (June 30, 2022-$41,063) is classified as long-term in the condensed consolidated interim statements of financial position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Company also had revolving credit facilities which included a committed revolving credit facility for up to $6,000 and a committed swingline credit
facility for up to $1,500 both of which may be used for general business purposes. On October 19, 2022, the Company drew down $3,000 from
the revolving credit facility and as of December 31, 2022, the amount remains outstanding and is classified as long term in the condensed
consolidated interim statements of financial position.

For the three and six month periods ended December 31, 2022, the Company incurred interest costs to service the borrowing facilities in the amount of $1,363 and $2,638 (three and six month periods ended December 31, 2021 - $500 and $1,036). During the six month period ended December 31, 2022, the Company borrowed $3,000 (December 31, 2021 - $nil) in operating facility and loans and repaid $8,850 (December 31, 2021 - $7,275).

Under its credit agreements with its lenders, the Company must satisfy certain financial covenants, principally in respect of total funded debt to earnings before interest, taxes and amortization ("EBITDA"), and debt service coverage ratio. As at December 31, 2022 and June 30, 2022 the Company was in compliance with all covenants related to its credit agreements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *Derivative assets and liabilities* 

The Company uses derivative financial instruments to hedge its exposure to interest rate risks. All derivative financial instruments are recognized as either assets or liabilities at fair value on the condensed consolidated interim statements of financial position. Upon entering into a hedging arrangement with an intent to apply hedge accounting, the Company formally documents the hedge relationship and designates the instrument for financial reporting purposes as a fair value hedge, a cash flow hedge, or a net investment hedge. When the Company determines that a derivative financial instrument qualifies as a cash flow hedge and is effective, the changes in fair value of the instrument are recorded in accumulated other comprehensive income (loss), net of tax in the condensed consolidated interim statements of financial position and will be reclassified to earnings when the hedged item affects earnings.

On January 21, 2020, the Company converted its US Base Rate loan to a one-month LIBOR loan plus the credit spread based on the syndicated loan agreement entered into on October 18, 2019. Separately, as required under the agreement, the Company locked in half of the original loan amount by entering into a 5-year interest rate credit swap with the two banks for $8,700 each to manage its exposure to changes in LIBOR-based interest rates. The interest rate swap hedges the variable cash flows associated with the borrowings under the loan facility, effectively providing a fixed rate of interest for five years of the six-year loan term.

The interest rate swap arrangement with two banks became effective on January 31, 2020, with a maturity date of December 31, 2024. The notional amount of the swap agreement at inception was $17,400 and decreases in line with the term of the loan facility. Effective March 31, 2022, Sangoma US Inc. entered into a fixed rate swap transaction worth $43,750 over a five year period and terminating on February 28, 2027. As of December 31, 2022, the notional amount of the interest rate swap was $45,509 (June 30, 2022 – $51,397). The interest rate swap has a weighted average fixed rate of 1.80% (June 30, 2022 – 1.65%) and have been designated as an effective cash flow hedge and therefore qualifies for hedge accounting.

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

15. Operating facility and loan and derivative assets and liabilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *Derivative assets and liabilities* 

 

As at December 31, 2022, the fair value of the interest rate swap assets were valued at current $1,245 (June 30, 2022-$649) and non-current $984 (June 30, 2022-$700). The current and non-current derivative assets were recorded in the condensed consolidated interim statements of financial position.

For the three and six month periods ended December 31, 2022, the change in fair value of the interest rate swaps, net of tax, was a gain of $212 and $649 (three and six month periods ended December 31, 2021 – $112 and $151) was recorded in other comprehensive income (loss) in the condensed consolidated interim statements of loss and comprehensive loss. The fair value of interest rate swap is determined based on the market conditions and the terms of the interest rate swap agreement using the discounted cash flow methodology. Any differences between the hedged SOFR rate and the fixed rate are recorded as interest expense on the same period that the related interest is recorded for the loan facility based on the SOFR rate.

16. Contract liabilities

Contract liabilities, which includes deferred revenues, represent the future performance obligations to customers in respect of services or customer activation fees for which consideration has been received upfront and is recognized over the expected term of the customer relationship.

Contract liabilities as at December 31, 2022 and June 30, 2022 are below:

---

| |
|:---|
| Opening balance, July 1 , 2021 |
| Revenue deferred during the period |
| Deferred revenue recognized as revenue during the period) |
| Additions through business combination (Note 20) |
| Ending balance, June 30, 2022 |
| Revenue deferred during the period |
| Deferred revenue recognized as revenue during the period |
| **Ending balance, December 31, 2022** |
| **Contract liabilities - Current** |
| **Contract liabilities - Non-current** |

---

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

17. Shareholders' equity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Share capital

The Company's authorized share capital consists of an unlimited number of common shares without par value. As at December 31, 2022 and 2021, the Company's issued and outstanding common shares consist of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three month periods ended** | **Three month periods ended** | **Six month periods ended** | **Six month periods ended** |
|  | **December 31** | **December 31** | **December 31** | **December 31** |
| | **2022** | 2021 | **2022** | 2021 |
|  | **#** | # | **#** | # |
| Shares issued and outstanding: |  |  |  |  |
| Outstanding, beginning of the period | **22289373** | 19021614 | **21439632** | 19021642 |
| Shares issued as instalment for shares to be issued | **981314** |  | **1838458** |  |
| Shares purchased and cancelled | **(62622)** |  | **(78822)** |  |
| Shares returned from escrow (Note 4) | **(142124)** |  | **(142124)** |  |
| Shares issued upon exercise of options | **437** | 39594 | **9234** | 39594 |
| Rounding of fractional shares in 2021 after share consolidation | - | - | **-** | (28) |
| **Outstanding, end of the period** | **23066378** | 19061208 | **23066378** | 19061208 |

---

On March 31, 2021, the Company acquired StarBlue Inc. and issued 3,018,685 common shares valued in the amount of $66,873 as part of the consideration, and 18,456 common shares valued in the amount of $330 as part of the acquisition costs. Under the terms of the agreement, a further 12,695,600 common shares valued in the amount of $192,102 are to be issued in instalments commencing on April 1, 2022. On August 3, 2022, 857,144 common shares and on November 8, 2022, 981,314 common shares were issued to StarBlue sellers in accordance with the instalment schedule defined in the share purchase agreement. Following these issuances 10,000,000 common shares remain to be issued and the remaining $151,315 discounted value of the common shares is recorded as shares to be issued in the condensed consolidated interim statements of changes in shareholders' equity.

During the six month period ended December 31, 2022, a total of 9,234 (December 31, 2021 – 39,594) options were exercised for cash consideration of $37 (December 31, 2021 – $346), and the Company recorded a charge of $20 (December 31, 2021 –$178) from contributed surplus to share capital.

In the fourth quarter of fiscal 2022, the Company announced its intention to make an NCIB with respect to its Shares. Pursuant to the NCIB, Sangoma may, during the 12-month period commencing June 23, 2022 and ending no later than June 22, 2023, purchase up to 1,071,981 shares, representing 5% of the total number of 21,439,632 Shares outstanding, through the facilities of the TSX, the Nasdaq Global Select Market or alternative Canadian trading systems. Under the term of the Normal Course Issuer Bid ("NCIB"), during the six month period ended December 31, 2022, the Company repurchased a total of 103,122 common shares (December 31, 2021 -nil) at an average price of $5.42 per share, for total consideration of $57. During the six month period 73,322 of those common shares were settled and cancelled along with 5,500 common shares that were repurchased in the fourth fiscal quarter of 2022, and the company recorded a total reduction of $477 (December 31, 2021-nil) in share capital for the value of share repurchased. The remaining 29,800 common shares of the 62,200 common shares repurchased during the second quarter of 2023, were settled and cancelled in January 2023.

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

17. Shareholders' equity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Share based payments

On December 13, 2022, the Corporation's shareholders approved the Plan, which replaces the previous share option plan (the "Legacy Plan"). No further grants will be made under the Legacy Plan.

For the three and six month periods ended December 31, 2022, the Company recognized share-based compensation expense in the amount of $1,282 and $2,197 (three and six month periods ended December 31, 2021 - $2,333 and $4,452).

<u>Stock Options</u>

Under the Plan (and previously under the Legacy Plan), employees are periodically granted share options to purchase common shares at prices not less than the market price of the common shares on the day prior to the date of grant or the volume weighted average trading price per share on the TSX during the five trading days immediately preceding the grant date. The fair value of each option grant is estimated at the date of grant using the Black-Scholes option pricing model. Expected volatility is determined by the amount the Corporation's daily share price fluctuated over a period commensurate with the expected life of the options. During the six month period ended December 31, 2022, the Corporation did not grant any options (December 31, 2021 – nil).

The following table shows the movement in the stock option plan:

---

| | | |
|:---|:---|:---|
| <br>**Measurement date** | **Number**<br>**of options** | **Weighted**<br>**average price** |
|  | # |  |
| Balance, July 1, 2021 | 1587310 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Granted | 285714 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercised | (39594) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expired | (277) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forfeited | (127459) |  |
| Balance, December 31 2021 | 1705694 |  |
| Balance, July 1, 2022 | 1207908 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercised | (9234) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expired | (82536) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forfeited | (181218) |  |
| **Balance, December 31, 2022** | **934920** |  |

---

The key assumptions used to fair value the grants were as follows:

---

| | | |
|:---|:---|:---|
| | **December 31**<br>**2022** | December 31<br>2021 |
| Share price |  | $18.62 |
| Exercise price |  | $18.62 |
| Expected volatility |  | 59.82% |
| Expected option life |  | 5 years |
| Risk-free interest rate |  | 0.78% |

---

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

17. Shareholders' equity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Share based payments

<u>Stock Options</u> 

The following table summarizes information about the stock options outstanding and exercisable at the end of each period:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31 2021** | **December 31 2021** | **December 31 2021** |
| **Exercise price** | **Number of stock <br> options <br> outstanding** | **Number of stock <br> options outstanding <br> and exercisable** | **Weighted <br> average remaining <br> contractual life** | Number of stock <br> options <br> outstanding | Number of stock <br> options outstanding <br> and exercisable | Weighted <br> average remaining <br> contractual life |
| $3.01 - $5.00 | **18018** | **18018** | **0.08** | 29906 | 20913 | 0.99 |
| $5.01 - $7.00 | **67338** | **53569** | **0.99** | 115409 | 65760 | 1.99 |
| $7.01-$9.00 | **241000** | **-** | **4.50** |  |  |  |
| $9.01 - $12.00 | **191479** | **100641** | **2.42** | 262641 | 86553 | 3.42 |
| $12.01-$15.00 | **55000** | **-** | **4.25** |  |  |  |
| $15.01-$18.00 | **178965** | **67211** | **3.50** | 239778 |  | 4.50 |
| $18.01-$20.00 | **75713** | **23667** | **3.67** | 285711 |  | 4.73 |
| $20.01-$27.00 | **107407** | **47077** | **3.11** | 772249 | - | 4.11 |
|  | **934920** | **310183** | **3.30** | 1705694 | 173226 | 3.96 |

---

<u>Share Units</u>

During the three month period ended December 31, 2022, 655,000 were granted (December 31, 2021 – nil). As at December 31, 2022, there were 655,000 RSUs and PSUs issued. (December 31, 2021 – nil). There were no DSUs issued. (December 31, 2021 – nil).

---

| | | | |
|:---|:---|:---|:---|
| | **PSU** | **RSU** | **Total** |
| Awards outstanding July 1, 2022 |  |  |  |
| Awards granted during the period | 302500 | 352500 | 655000 |
| Awards outstanding December 31, 2022 | 302500 | 352500 | 655000 |

---

The fair value of each RSU is $4.20 per share.

The fair value of each of the PSUs tied to non-market based performance targets is $4.20 per share. The fair value of each of the PSUs tied to market-based performance targets is $3.69 per share using the Monte Carlo simulation. The key assumptions used in the Monte Carlo simulation are:

---

| | | |
|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2021** |
| Share price | **3.69** |  |
| Expected volatility | **60.00%** |  |
| Time to expirty | **2.52 years** |  |
| Risk-free interest rate | **4.08%** |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Loss per share

Both the basic and diluted loss per share have been calculated using the net loss attributable to the shareholders of the Company as the numerator.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three month periods ended** | **Three month periods ended** | **Six month periods ended** | **Six month periods ended** |
|  | **December 31** | **December 31** | **December 31** | **December 31** |
| | **2022** | 2021 | **2022** | 2021 |
| **Number of shares:** |  |  |  |  |
| Weighted average number of shares outstanding | **22512058** | 19030708 | **23039477** | 19026161 |
| Shares to be issued | **10000000** | 12695600 | **10000000** | 12695600 |
| Weighted average number of shares used in diluted earnings per share | **32512058** | 31726308 | **33039477** | 31721761 |
| **Net loss for the period** | **(2735.00)** | (2477.00) | **(4711.00)** | (4778.00) |
| **Loss per share:** |  |  |  |  |
| Basic loss per share | $**(0.084)** | $(0.078) | $**(0.143)** | $(0.151) |
| Diluted loss per share | $**(0.084)** | $(0.078) | $**(0.143)** | $(0.151) |

---

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

18. Related parties

The Company's related parties include key management personnel and directors. Unless otherwise stated, none of the transactions incorporated special terms and conditions and no guarantees were given or received. Outstanding balances payable are usually settled in cash and relate to director fees.

The Company had incurred no related party transactions and had no outstanding balance with related parties for the three and six month periods ended December 31, 2022 and 2021.

19. Segment disclosures

The Company operates in one operating segment; development, manufacturing, distribution and support of voice and data connectivity components for software-based communication applications. The majority of the Company's assets are located in Canada and the United States of America ("USA"). The Company sells into three major geographic centers: USA, Canada and other foreign countries. The Company has determined that it has a single reportable segment as the Company's decision makers review information on a consolidated basis.

Revenues for group of similar products and services can be summarized for the three and six month periods ended December 31, 2022 and 2021 as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three month periods ended** | **Three month periods ended** | **Six month periods ended** | **Six month periods ended** | **Six month periods ended** |
| | **December 31** | **December 31** | **December 31** | **December 31** | **December 31** |
|  | **2022** | | **2022** | 2021 | 2021 |
| | | 2021<br>(Note 2) | | (Note 2) | (Note 2) |
|  |  | $— | $— | $— | $|
| Products |  |  |  |  | 32088 |
| Services |  |  |  |  | 72597 |
| Total revenues |  |  |  |  | 104685 |

---

The sales, in US dollars, in each of these geographic locations for the three and six month periods ended December 31, 2022 and 2021 as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three month periods ended** | **Three month periods ended** | **Six month periods ended** | **Six month periods ended** | **Six month periods ended** |
| | **December 31** | **December 31** | **December 31** | **December 31** | **December 31** |
|  | **2022** | | **2022** | 2021 | 2021 |
| | | 2021<br>(Note 2) | | (Note 2) | (Note 2) |
|  |  | $— | $— | $— | $|
| USA |  |  |  |  | 93069 |
| Canada |  |  |  |  | 2903 |
| All other countries |  |  |  |  | 8713 |
| Total revenues |  |  |  |  | 104685 |

---

The non-current assets, in US dollars, in each of the geographic locations as at December 31, 2022 and June 30, 2022 are below:

---

| | | | |
|:---|:---|:---|:---|
|  | | June 30 | June 30 |
| | **December 31**<br>**2022** | 2022 | 2022 |
|  |  | $— | $|
| Canada |  |  | 7000 |
| USA |  |  | 431225 |
| Total non-current assets |  |  | 438225 |

---

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

20. Business combinations

On March 28, 2022, the Company acquired all the shares of NetFortris Corporation. The Company paid an aggregate purchase price of $64,820, net of a net working capital adjustment of ($8,942), and comprised of $50,418 cash consideration, 1,494,536 common shares at a fair value of $16,801. The Company issued 1,494,536 common shares including 327,241 shares representing a holdback for indemnification purposes on closing of the acquisition. The Company estimates that a further payment of $6,543 will be paid as part of an earn out that is up to $12,000 if certain operating targets are met. The Company incurred estimated transaction costs in the amount of $2,939 which were expensed and included in the condensed consolidated interim statements of loss and comprehensive loss for the three month period ended March 31, 2022. The acquisition has been accounted for using the acquisition method under IFRS 3, Business Combinations.

The following table summarizes the fair value of consideration paid on the acquisition date and the preliminary allocation of the purchase price to the assets and liabilities acquired.

---

| | |
|:---|:---|
| **Consideration** | **$** |
| Cash consideration on closing |  |
| Net working capital adjustment |  |
| Cash held in escrow for working capital |  |
| Cash held in escrow for telecom taxes |  |
| Cash held in escrow for indemnification |  |
| Additional consideration for earn out |  |
| Common shares issued on closing |  |
| Common shares reserved in escrow for indemnification |  |
| **Purchase price allocation** |  |
| Cash |  |
| Trade receivables |  |
| Inventories |  |
| Property and equipment |  |
| Right-of-use assets |  |
| Other current assets |  |
| Other non-current assets |  |
| Deferred income tax asset |  |
| Accounts payable and accrued liabilities |  |
| Sales tax payable |  |
| Contract liabilities |  |
| Lease obligations on right-of-use assets |  |
| Other non-current liabilities |  |
| Intangible assets |  |
| Goodwill |  |

---

---

| |
|:---|
| **Sangoma Technologies Corporation** |
| Notes to the condensed consolidated interim financial statements |
| For the three and six month periods ended December 31, 2022 and 2021 |
| (Unaudited in thousands of US dollars, except per share data)  |

---

21. Subsequent events

There is no subsequent event.

22. Authorization of the condensed consolidated interim financial statements

The condensed consolidated interim financial statements were authorized for issuance by the Board of Directors on February 9, 2023.

## Exhibit 99.2

**EXHIBIT 99.2**

 ****

 ****

 

 

***Management discussion and analysis of financial***

***condition and results of operations for the***

***three and six month periods ended December 31, 2022***

 ****

 

 **

 ****

**<u>**TABLE OF CONTENTS**</u>**

---

| | |
|:---|:---|
| **INTRODUCTION** | **3** |
| **OVERVIEW** | **4** |
| **RESULTS OF OPERATIONS** | **13** |
| **QUARTERLY RESULTS OF OPERATIONS** | **17** |
| **LIQUIDITY AND CAPITAL RESOURCES** | **18** |
| **CONTRACTUAL OBLIGATIONS** | **19** |
| **OFF-BALANCE SHEET ARRANGEMENTS** | **20** |
| **RELATED PARTY TRANSACTIONS** | **20** |
| **CRITICAL ACCOUNTING POLICIES AND ESTIMATES** | **20** |
| **FINANCIAL INSTRUMENTS AND OTHER INSTRUMENTS** | **20** |
| **SIGNIFICANT EVENTS** | **21** |
| **OUTSTANDING SHARE INFORMATION** | **21** |
| **GUIDANCE** | **21** |
| **CONTROLS AND PROCEDURES** | **22** |
| **GLOSSARY OF TERMS** | **24** |

---

#### INTRODUCTION
As used in this Management Discussion and Analysis ("MD&A"), unless the context indicates or requires otherwise, all references to the "Company", "Sangoma", "we", "us", or "our" refer to Sangoma Technologies Corporation, together with our subsidiaries, on a consolidated basis as constituted on December 31, 2022. The MD&A compares the financial results for the three and six month periods of 2023 with those of the same periods in the previous year. This MD&A should be read in conjunction with Sangoma's audited annual consolidated financial statements and related notes for the year ended June 30, 2022 ("Financial Statements"), which have been prepared in accordance with International Financial Reporting Standards ("IFRS"). All amounts are in millions of United States dollars except where otherwise indicated.

Additional information about us, including copies of our continuous disclosure materials, is available on our website at www.sangoma.com, through the EDGAR website at www.sec.gov or through the SEDAR website at www.sedar.com.

This MD&A is dated as of February 9, 2023.

**NON-IFRS MEASURES** 

This MD&A contains references to certain non-IFRS financial measures such as Adjusted Operating Income, Adjusted EBITDA and Adjusted Cash Flow. Non-IFRS financial measures are used by management to evaluate the performance of the Company and do not have any meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other reporting issuers. Non-IFRS financial measures used herein have been applied on a consistent basis. "Adjusted Operating Income (Loss)" means IFRS income (loss) before interest expense (net), business integration costs, exchange listing expense, change in fair value of consideration payable, business acquisition costs, goodwill impairment and income taxes. "Adjusted EBITDA" means earnings before income taxes, interest expense (net), share-based compensation, depreciation (including for right-of-use assets), amortization, business integration costs, exchange listing expense, business acquisition costs, goodwill impairment and change in fair value of consideration payable. Adjusted EBITDA is a measure used by many investors to compare issuers. "Adjusted Cash Flow" means net cash flows from operating activities as defined by IFRS less the capitalized development costs that Sangoma amortized during the period, plus interest expense (net), business acquisition costs paid, business integration costs, and exchange listing expense. We believe that Adjusted Operating Income (Loss), Adjusted EBITDA and Adjusted Cash Flow are useful supplemental information as they provide an indication of the results generated by the Company's main business activities before taking into consideration how they are financed, taxed, depreciated or amortized. Investors are cautioned that non-IFRS financial measures, such as those presented herein, should not be construed as an alternative to net income or cash flow determined in accordance with IFRS. The reconciliation of the closest IFRS measure to each non-IFRS measure is set out on pages 13, 17, and 18 herein.

**FORWARD-LOOKING STATEMENTS**

This MD&A contains forward-looking statements, including statements regarding the expected fiscal 2023 financial results and the future success of our business, development strategies and future opportunities.

Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking statements include, but are not limited to, statements relating to management's guidance on revenue and Adjusted EBITDA, statements relating to expected inventory levels, statements relating to future lease and interest payments, statements relating to the impact of the continuing COVID-19 pandemic, statements concerning estimates of expected expenditures, statements relating to expected future production and cash flows, and other statements which are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should" and similar expressions indicate forward-looking statements.

Although Sangoma believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date that the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in forward-looking statements.

Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other events contemplated by the forward-looking statements will not occur. Although Sangoma believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct as these expectations are inherently subject to business, economic and competitive uncertainties and contingencies. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained herein include, but are not limited to, risks and uncertainties associated with the integration of NetFortris Corporation ("NetFortris"), the remediation of material weakness identified in our internal control over financial reporting, the impact of the continuing COVID-19 pandemic, changes in exchange rate between the United States dollar and other currencies, expectations regarding the amount or frequency of impairment losses, including as a result of the write-down of intangible assets, including changes in technology, changes in the business climate, changes in the regulatory environment, the decline in the importance of the PSTN, new competitive pressures, the impact of global supply chain delays, the retention of key staff, the increase in cost and availability of our components and materials, and the impact of changes to interest rates and the other risk factors described in our most recently filed Annual Information Form for the fiscal year ended June 30, 2022. See also "Guidance" and "Controls and Procedures" below for more information on certain of these risks and uncertainties.

The forward-looking statements contained in this management's discussion and analysis are expressly qualified by this cautionary statement. Sangoma undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by law.

#### OVERVIEW
 ****

Sangoma's products and services are used by leading companies throughout the world and in leading UC, PBX, IVR, contact center, carrier networks, and data communication applications worldwide. Sangoma's portfolio of products also enable service providers, carriers, enterprises, SMBs, and OEMs alike to leverage their existing infrastructure for maximum financial return, while still delivering the most advanced applications and services from the latest technologies available. Please refer to the Glossary of Terms for detailed definitions of terms used throughout this MD&A.

**Communications as a Service (CaaS) Portfolio**

Sangoma is a trusted leader in delivering value-based Communications as a Service solutions for businesses of all sizes. The value-based communications segment includes small businesses to large enterprises who are looking for all the advantages of cloud-based communications at a fair price. Sangoma's current Communications as a Service offerings are typically offered with monthly, yearly, or multi-year contracts and include:

Unified Communications as a Service ("UCcaS")

Trunking as a Service ("TaaS")

Contact Center as a Service ("CCaaS")

Communications Platform as a Service ("CPaaS")

Video Meetings as a Service ("MaaS")

Collaboration as a Service ("Collab aaS")

Desktop as a Service ("DaaS")

Access Control as a Service ("ACaaS")

***Unified Communications as a Service (UCaaS)***

Sangoma's UC solutions are business communication systems (PBX's with advanced UC features, such as presence/chat, conferencing, mobility, fax, and more) that can be deployed on-premise or hosted in the Cloud, allowing businesses to select the best option for their needs. Unified Communication systems, because of their mobility features such as having the business phone number ring on an app on your smartphone and/or desktop and instant messaging capability, enable remote work and work from home much more efficiently. Sangoma's Unified Communication solutions fully integrate with our phones, soft clients, and network interoperability products to provide a fully interoperable solution from a single vendor.

*Cloud-Based Business Phone Solution*

Sangoma offers its customers full-scale cloud-based Unified Communications solutions. With Sangoma, businesses can get contact center, mobility, softphone, call control, and productivity features included for every user at a reasonable price. Sangoma's hosted phone service delivers the customer experience businesses demand at an affordable price point. Customers can also choose pre-provisioned phones that customers simply plug into their network.

*On-Premise Business Phone Solution*

Sangoma also offers the more traditional on-premise UC phone system, for businesses still wanting to deploy their business phone system on premise. Whether deployed on a dedicated appliance or in the customer's virtual environment, Sangoma provides the power and connectivity necessary.

IP Deskphones, Headsets and UC Clients: Sangoma provides desktop and softphone collaboration clients that integrate seamlessly with our UC solution offerings and deliver UC features (presence, contacts, chat, calling, audio and video conferencing, etc.) from a single application, on any device, at any location.

IP Deskphones: Sangoma offers a full line of phones that work with both our cloud and on-premise systems that are perfect for every user type, from casual to call center to managers and executives. Sangoma's product line includes entry-level, mid-range, and executive-level phones. All models include HD Voice and plug-and-play deployment. Sangoma's range of IP phones are customized to seamlessly integrate with all of our UC Systems and provide zero touch installation, simplified system management, and instant access to a wide range of features.

Headsets: Sangoma also offers headsets that either work in conjunction with the desktop phones (by plugging into the phone) or work in conjunction to our desktop soft client (by plugging directly into the computer). These headsets enable roaming of up to 325 feet from the phone or desk computer.

UC Clients and Softphones: Unified Communication Clients (or softphones) are used to make or receive phone calls with your business phone number and can be used as your main phone or as an extension of your desk phone. They are available as an app on your smartphone or computer. These UC clients have enabled employees to work remote seamlessly by enabling phone calls to customers and other employees as if they were in a physical office. Sangoma offers UC clients with all of our Unified Communication / Business phone system product lines.

***Trunking as a Service (TaaS)***

SIP trunks deliver Internet-based telephony services to businesses using their existing internet connection, eliminating the need for separate traditional PSTN or digital telecom connections. SIP trunking is fast becoming the technology of choice to interconnect an IP PBX system to a telephone company. The main drivers are cost efficiencies (over fixed lines such as ISDN or analog lines from incumbent telcos) and end-to-end UC features/transparency. Cost efficiencies are realized because SIP trunking uses already-available broadband connections at customer premises. Sangoma offers both retail and wholesale SIP Trunking which allows our customers to choose the service that best meets their needs. Either service offers DIDs and number porting.

*Retail SIP Trunking*

Retail SIP trunking offers predictable monthly expenses with pricing based per trunk. SIPStation, Sangoma's retail SIP trunking service, is seamlessly integrated into our various UC platforms, making it easy to get up and running. It also includes an integrated fax service option, enabling a business to send and receive faxes from a web interface or from a local fax machine. Typically, small to mid-sized businesses and enterprises would utilize this type of service.

*Wholesale SIP Trunking*

Sangoma's wholesale SIP trunking offer is now available following the acquisition of VoIP Innovations. Pricing for wholesale SIP trunking is usage-based but with a larger monthly minimum commitment. This includes origination, termination, SMS/MMS, e911, and fraud mitigation. Typically, very large businesses or service providers who resell SIP trunks would utilize this type of service.

*Fax as a Service*

Faxing remains an important communications tool, yet VoIP networks are sometimes unable to send faxes reliably because fax standards are based on very specific timing that can be interrupted in VoIP systems, especially where there is substantial latency. Sangoma's FoIP service, FaxStation, is a hosted service to remedy this problem, available with our TaaS. It features a telecom appliance with up to four analog connections for fax machines and operates in concert with Sangoma's fax server data center to encrypt and package the fax communication to make it fail-safe. This is particularly useful for small businesses that rely on fax communications but also for industries with challenging network conditions, such as mining, oil rigs, and ship-to-shore over satellite.

**Contact Center as a Service (CCaaS)**

Contact Center as a Service (CCaaS) is our cloud-based contact center, or customer experience, offering. It provides robust contact center capabilities running in various ways: either standalone, in conjunction with our other cloud services (such as UCaaS), or integrated "inside" our UCaaS product in a simplified version. This latter solution is intended for 'departmental' type usage, by companies that are not pure-play contact centers, but that might have a department such as customer service or technical support that operate inside that company almost like a mini contact center.

***Communications Platform as a Service (CPaaS)***

Communications Platform as a Service (CPaaS) allows developers to easily build services and applications using real-time communication features, such as voice, video, chat, and SMS, via the cloud. Our platform enables Sangoma, our integrator/developer partners, and advanced customers to build new communications services based on voice, rest APIs, WebRTC, and SMS. When running an application on a CPaaS platform, performance is critical. To ensure peak performance, Sangoma offers its own SIP trunking service, providing optimized connectivity in addition to easy access to phone numbers. Sangoma also sells a series of 'applications' (or Apps) based upon our CPaaS product that customers can purchase.

***Video Meetings as a Service (MaaS)***

Sangoma Meet is our video meetings, cloud-based service accessible from any device, be it desktop or mobile. It enables file sharing on screen so collaboration with co-workers is enhanced, integrates seamlessly with your calendar, and enables PSTN phone calls. Sangoma Meet is available in free and chargeable tiers.

***Collaboration as a Service (Collab aaS)***

Collaboration as a Service (Collab aaS) is Sangoma's cloud-based offering for enabling people to work together more productively. This service is called TeamHub. It allows users to interact using any of the various forms of communications, including chatting, calling, and video. TeamHub integrates Sangoma's softphone client software applications (desktop and mobile) and is designed to allow communications to start in one mode (such as chat), and move through different modes very elegantly, in effect 'upgrading' that mode of communications to a voice call in real time, and/or upgrading that voice call to a video meeting.

***Desktop as a Service (DaaS)***

Sangoma's Desktop as a Service helps companies adapt to today's modern, flexible, and remote workforce. It is the most secure method for staff to access their tools and applications from any location to do their work, delivers simplified IT administration and cuts down on the CapEx of deploying PCs. Sangoma is one of the only companies that can offer communications capability inside a DaaS product.

***Access Control as a Service (ACaaS)***

At Sangoma, this product offering is called SmartOffice Access. The SmartOffice product line is to be a family of IoT based services, and it was launched first with Access Control. Access Control is a means of controlling access to one's office or parts of an office and was traditionally done via the well-known white 'swipe cards' or fobs. Sangoma is innovating in that space by eliminating the need for such older technologies and extending our experience with mobile apps that so many of our customers and their employees already get from us, as a Softphone. This new mobile allows one to open doors using your smartphone and the app from Sangoma, wirelessly using IoT protocols. No more swipe cards, no more readers, no more wiring behind the walls. This is one of Sangoma's first forays into cloud services that extend our CaaS suite beyond the strict definition of 'communications'.

**MSP Portfolio**

Sangoma's cloud-based Managed Service Provider ("MSP") offerings deliver mission critical communication services that businesses need and complement our full line of Communications as a Service solutions. The MSP product line is built upon a tightly integrated, enterprise grade, and end-to-end managed network, which is all supported by an expert 24/7 network engineering team. The current MSP offering includes three primary services:

Managed Security: Sangoma provides a cloud-based service, sometimes called Unified Threat Management ("UTM"), whereby the customers network, including voice and data traffic, are secured by intrusion prevention and detection capabilities. The network security service helps protect customers against attacks and data losses from spam, viruses, ransomware, botnets, etc.

Managed SD-WAN: Sangoma offers a cloud-based software-defined approach to managing a customers wide area network. The SD-WAN service enables network redundancy through the ability to manage multiple internet connections from multiple providers, which is seen as one seamless connection for the customer. If one connection fails, the customer does not lose connectivity and has uninterrupted uptime. The service also provides traffic shaping whereby certain types of traffic can be given priority or forced in priority.

Managed Access: Sangoma also provides a robust broadband connectivity solution, including network monitoring, analytics, backup, and a fully PCI-compliant offering for payment card and credit card transactions. Additionally, our Managed Access solution integrates with Managed Security and Managed SD-WAN services, delivering unique capabilities such as secure, end-to-end peering connections to critical destinations (such as Public Cloud sites like AWS and Azure) and Quality of Service commitments.

*Network Interconnection Products*

In addition to the CaaS and MSP offerings described above, Sangoma also offers network interconnection products. These products connect different types of networks together, such as VoIP networks to PSTN networks, or VoIP networks to mobile networks or different types of VoIP networks.

*Session Border Controllers (SBCs)*

Anytime two VoIP networks interconnect, issues of security and interoperability arise. SBCs can manage these issues, including provider-to-provider connections, provider-to-enterprise connections, and enterprise-to-enterprise connections. Sangoma's SBCs are available as hardware appliances, as software-only solutions running on a virtual machine in hosted environments, or as a hybrid of both. The hybrid solution is unique to Sangoma and provides all the flexibility expected from virtual machine capability coupled with the scalability that is found in hardware-based solutions. Sangoma's SBCs have broad interoperability certifications.

*VoIP Gateways*

VoIP gateways are needed any time voice traffic moves from a VoIP network to a traditional PSTN telephone network. As the traffic traverses these networks, there are issues that need to be resolved regarding both the media (the sound of the caller's voice) and the signaling (the method used to control the media traveling over that connection).

In a service provider or carrier network, much larger gateways perform these same tasks. In addition, there are signaling protocols that are only used when carrier networks communicate with other carrier networks that are not included in the enterprise product line.

All Sangoma's gateways have broad interoperability certifications.

*PSTN Interface and Media Processing Boards*

Sangoma's complete line of boards connect and interface to the PSTN. Even though IP networks are growing and quickly becoming the standard, the PSTN still exists, and new communication solutions often need to connect to the PSTN. These boards are primarily used by communications solution developers in PC/Server based telecommunications systems that connect to the PSTN. They perform a very similar task to VoIP gateways, but are installed inside the server rather than being stand-alone devices. By providing customers with the option of using a PSTN interface board or a VoIP gateway, Sangoma maximizes flexibility based on installation requirements, particularly when space and power are at a premium. They may also be used in harsh conditions that require ruggedized servers.

**Open-Source Software Products**

*Asterisk and FreePBX*

Sangoma is the primary developer and sponsor of the Asterisk project, the world's most widely used open-source communications software, and the FreePBX project, the world's most widely used open-source PBX software.

Sangoma also offers revenue-generating products and services, beyond the open-source Asterisk or FreePBX software, to users of these open-source software projects. The types of products and services Sangoma offers includes software add-ons to Asterisk or FreePBX, IP phones, SIP trunking, cloud-based fax, training, technical support, maintenance, PSTN cards, VoIP gateways, session border controllers, and commercial/hardened versions of the PBX/UC software.

**<u>OVERALL PERFORMANCE</u>** **<u> </u>**

**Operational**

Sangoma Technologies is a trusted leader in delivering cloud-based CaaS and MSP solutions for businesses of all sizes. Customers include companies from small/medium businesses (SMB's) right up to large enterprises who are looking for all the advantages of cloud-based communications and managed network services at a fair price. In addition to those cloud-based Services, Sangoma also has a broad suite of Products to complement its Services.

 ****

Enterprises, SMBs and carriers in over 150 countries rely on Sangoma's technology as part of their mission-critical infrastructures. Through a worldwide network of distribution partners, Sangoma delivers high-quality services and products, some of which carry the industry's first lifetime warranty.

Sangoma has always been operated and managed as a single economic entity. There is one management team that directs the activities of all aspects of the Company and it is managed globally by our executive team. As a result, we believe that we have one reporting segment, being the consolidated Company. Over time, this may change as the Company grows and when this occurs, we will reflect the change in our reporting practice.

**Revenue**

Sangoma primarily generates revenue from Services and Products. Our Services revenue is generated primarily from customers entering recurring revenue agreements. Product revenues are comprised of the sale of products and services that generate non-recurring revenue.

**Innovation**

As a technology company, Sangoma is continuously working on a large number of projects across its broad portfolio of existing products and services. While the Company has introduced several new additions to its portfolio over the last few years, the majority of the Company's investment in Research and Development ("R&D") is dedicated to sustaining, improving on and enhancing its broad portfolio of existing products and services. Sangoma believes that innovation is essential to a technology company's future. The Company also believes that R&D investment is necessary in order to address the needs of the Company's wide-ranging group of customers (which include business of all sizes including service providers, enterprises, small-medium sized businesses, and original equipment manufacturers) in over 150 countries, to keep pace with technology developments in the cloud communications industry, to meaningfully compete in that industry, and to achieve and maintain market acceptance.

The Company focuses on creating and introducing products to the market as soon as commercially practical and, thereafter, focuses on enhancements to further improve its products. Such product introductions enable the Company to validate product acceptance to some degree, and to get products to market efficiently to start generating revenue. Furthermore, the Company focuses on keeping its product development costs for new projects under control in a number of ways, including by reusing its existing code base where applicable and by leveraging open-source software.

Sangoma continues to invest in R&D to develop new products and to improve existing offerings with spending on R&D increasing each year.

**Sales and marketing**

R&D is important, but without Sales and Marketing, customers can be too unaware of the advancements that Sangoma has made in innovation. So, Sangoma continues to increase its investment in both Sales and in Marketing, to promote awareness of the Company, to communicate the critical shift from single products to full solutions to cloud, and to drive customer acquisition.

*Sales*

Sangoma uses a dual sales path 'go to market' approach: direct sales to some of our largest customers and indirect distribution to most of our other clients.

* **Direct Sales** is typically used for selling to 'service providers', OEMs
and large enterprise type businesses.

Service Providers is a broad category of customers that included telcos, ISPs, ITSPs, wireless/mobile operators, MSPs, UCaaS operators, etc. These types of organizations are potential customers for Sangoma.

OEM partners are companies that 'design in' Sangoma products as a component of their solutions. OEM customers tend to be committed participants in their given markets and have longer-term focus. It is important to reach these potential customers in the early days of any project to secure 'design wins' and to have sales and marketing programs that will ensure close collaboration during product and sales development cycles.

Enterprise customers are the classic 'larger' companies who buy products or services for their own use. This type of customer has similar 'use cases' to a SMB type customer but is large enough that some prefer to do business directly with Sangoma, the Company often wants a direct relationship with them as well, and they are buying enough for Sangoma to cost effectively service them directly.

* **Indirect Sales**: In most cases, Sangoma uses the indirect or channel model. We value
the 'multiplier effect' of a channel model (i.e., one of our salespeople sells to dozens of partners who sell to hundreds/thousands
of customers), the more 'local nature' of a channel partner who is often based quite near to their end customers, and the
more cost-effective structure of indirect distribution in a typical sales cycle. In such cases, Sangoma utilizes this indirect distribution
model to reach the full breadth of customers, often based upon a two-tier Channel model:

The 'upper tier' of the indirect model is typically made up of Distributors or Master Agents, who normally sell not to the end customer, but to the 'second tier' of the channel. Master Agents are now sometimes called Technology Service Brokers or Telecom Solution Distributors. This upper tier of the channel tends to be larger organizations and cover broader geographic regions.

The 'second tier' of the indirect model is normally made up of Resellers and Agents. Distributors typically sell to resellers, and Master Agents typically sell to Agents. The Resellers and Agents then sell to end users (with some performing other ancillary services such as installation and/or support). The second tier tend to be smaller organizations (though not always) and are usually more 'local' in nature.

Sangoma has parts of its sales team that focus on Direct customers, whereas the majority focuses on the Channel. In the Channel, partners require frequent attention to keep Sangoma 'on their mind' in a crowded product marketplace. Therefore, a portion of the Channel sales team services the distributors and master agents as the upper tier of the channel, while a different part of the team focuses on the resellers/agents. Finally, Sangoma has professional sales teams across all our key geographic regions as well.

 

 

 

 

 

*Marketing*

Sangoma also continues to increase its efforts in marketing. The Company has assembled corporate marketing programs with two key objectives in mind:

* to promote the Sangoma brand and positioning, which included conveying the message about
the Company's full solutions and its Cloud-First approach.

* leads generation as one of the front-end steps in customer acquisition.

Sangoma is now using various marketing techniques typical of technology firms to accomplish those two objectives. This includes participation in tradeshows, speaking at selected industry events, attending specialized seminars run by Sangoma's distribution channel and other partners, investing in electronic marketing strategies (e.g., web presence, social media and blogging, online advertising, search engine campaigns, etc.), conducting lead generation campaigns via email/social media/etc., webinars, creating thought leadership pieces, PR, etc.

In addition to the overall corporate messaging, in support of the above two objectives, Sangoma has developed a comprehensive set of channel promotion programs, aimed at the Company's indirect partners described above, both distributors/master agents as well as resellers/agents. The Company seeks to attract new channel partners and to grow the business with existing partners. Sangoma has implemented several incentive programs to reward its channel partners for performance and behaviours that Sangoma believes will grow revenues.

#### RESULTS OF OPERATIONS
All amounts are in millions of United States dollars except where otherwise indicated.

**SUMMARY**

The following table outlines our unaudited consolidated interim statements of loss and comprehensive loss for the periods indicated:

---

| | | |
|:---|:---|:---|
| | **Three month periods ended**<br>**December 31** | **Six month periods ended**<br>**December 31** |
| | Change | Change |
|  | % | % |
| **Revenue** | 17% | 20% |
| Cost of sales | 30% | 36% |
| Gross profit | 12% | 15% |
| Expenses |  |  |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 18% | 24% |
| &nbsp;&nbsp;&nbsp;Research and development | 19% | 16% |
| &nbsp;&nbsp;&nbsp;General and administration | 8% | 10% |
| &nbsp;&nbsp;&nbsp;Foreign currency exchange (gain) loss**)**) | -225%**)**) | -186% |
|  | 13% | 15% |
| Loss before interest expense (net), business integration costs, gain on change in fair value of consideration payable and income taxes**)**) | 75%**)**) | 49% |
| Interest expense (net) | 172% | 157% |
| Business integration costs | 0%) | -52% |
| Exchange listing expense) | -100%) | -100% |
| (Gain) loss on change in fair value of consideration payable**)**) | 150%**)**) | -1855% |
|  | 8%) | -48% |
| Loss before income tax**)** | 32%**)** | -15% |
| Provision for income taxes |  |  |
| &nbsp;&nbsp;&nbsp;Current | 70%) | -2% |
| &nbsp;&nbsp;&nbsp;Deferred**)**) | 261%**)**) | -69% |
| **Net loss)**) | 10%**)**) | -1% |
| Other comprehensive income (loss) |  |  |
| Items to be reclassified to net income (loss) |  |  |
| &nbsp;&nbsp;&nbsp;Change in fair value of interest rate swaps, net of tax | 91% | 333% |
| **Comprehensive loss)**) | 6%**)**) | -12% |
| **Loss per share** |  |  |
| &nbsp;&nbsp;&nbsp;Basic**)** | 8%**)** | -6% |
| &nbsp;&nbsp;&nbsp;Diluted**)**) | 8%**)**) | -6% |
| **Weighted average number (thousands)** |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 2% | 4% |
| &nbsp;&nbsp;&nbsp;Diluted | 2% | 4% |

---

**REVIEW OF OPERATIONS**

**Revenue**

Sales for the three and six month periods ended December 31, 2022 were $62.04 and $126.09 million, up 17% and 20% from the $53.19 and $104.69 million in the comparable periods of fiscal 2022.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three month periods ended** | **Three month periods ended** | **Three month periods ended** | **Three month periods ended** | **Six month periods ended** | **Six month periods ended** | **Six month periods ended** | **Six month periods ended** |
| | **December 31** | **December 31** | **December 31** | **December 31** | **December 31** | **December 31** | **December 31** | **December 31** |
| | **2022** | 2021 | Change | Change | **2022** | 2021 | Change | Change |
|  | **$** | $| $| % | **$** | $| $| % |
| Service revenues | **49.44** | 36.74 | 12.70 | 35% | **97.76** | 72.60 | 25.16 | 35% |
| Percentage of total revenues | **80%** | 69% | 11% | 16% | **78%** | 69% | 0.08 | 12% |
| Product revenues | **12.60** | 16.45 | (3.85) | -23% | **28.33** | 32.09 | (3.76) | -12% |
| Percentage of total revenues | **20%** | 31% | -11% | -35% | **22%** | 31% | -8% | -27% |
| **Total revenues** | **62.04** | 53.19 | 885% | 17% | **126.09** | 104.69 | 21.40 | 20% |

---

The revenue increase in both periods primarily resulted from the NetFortris acquisition and our existing Services business continuing to grow and compound. As a result, our Services revenue represented approximately 80% of total revenue this quarter, up from 69% in the same quarter of the prior year, and consistent with our strategic objective.

When compared sequentially, our revenue was down 3% from $64.05 million in the first quarter of fiscal 2023. This decrease is due primarily to the softness in Product sales this quarter, as customers continue to be more sensitive to Capex purchases (given current economic headwinds), to the supply chain conditions, and the impact of a strong US dollar exchange rate on some international order flow.

**Cost of revenue and gross profit**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three month periods ended** | **Three month periods ended** | **Three month periods ended** | **Six month periods ended** | **Six month periods ended** | **Six month periods ended** |
| | **December 31** | **December 31** | **December 31** | **December 31** | **December 31** | **December 31** |
|  | **2022** | 2021 | Change | **2022** | 2021 | Change |
|  | **$** | $| $% | **$** | $| $% |
| Cost of sales | **19.25** | 14.84 | 30% | **39.96** | 29.47 | 36% |
| Gross profit | **42.79** | 38.35 | 12% | **86.13** | 75.22 | 15% |

---

 

The cost of sales for the three months ended December 31, 2022 increased by 30% to $19.25 million compared to $14.84 million in the equivalent period of the prior year, and increased by 36% to $39.96 million for the six months ended December 31, 2022 as compared to $29.47 million in the equivalent period of the prior year. The period over period increases in cost of sales was driven primarily by the addition of the NetFortris business and by the continuing supply chain pressures. Sangoma's cost of sales has been impacted by global supply chain disruptions, for both electronic components and for shipping. In some cases, Sangoma has needed to order further ahead, pay more for electronic components, and to ship product by air versus by sea (at higher cost). Nevertheless, Sangoma was able to fill most customer orders in the second quarter, despite these supply chain pressures.

Gross profit for the three months ended December 31, 2022 was $42.79 million, up 12% from the $38.35 million realized in the equivalent period of the prior year and was $86.13 million for the six months ended December 31, 2022, up 15% from the $75.22 million realized in the equivalent period of the prior year. Gross margin for the second quarter of fiscal 2023 was approximately 69% of revenue. This is down slightly from the same quarter last year partly because of the global supply chain pressures referenced and partly due to the slightly lower average margin from the Managed Services products. This level of gross margin is at the upper end of our expectations for fiscal year 2023.

**Operational expense**

As permitted under IFRS, costs are allocated by function except for the impact of foreign exchange, which can result in swings between time periods.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three month periods ended** | **Three month periods ended** | **Six month periods ended** | **Six month periods ended** |
| | **December 31** | **December 31** | **December 31** | **December 31** |
|  | 2021 | Change | 2021 | Change |
|  | $| % | $| % |
| Sales and marketing | 13.20 | 18% | 25.31 | 24% |
| Research and development | 7.76 | 19% | 16.12 | 16% |
| General and administration | 18.15 | 8% | 35.42 | 10% |
| Foreign currency exchange (gain) loss | 0.08) | -225% | 0.07) | -186% |
| Total Expense | 39.19 | 13% | 76.92 | 15% |

---

<u>Sales and marketing</u>

Sales and marketing expense was $15.61 million for the second quarter of fiscal 2023, an increase from the $13.20 million incurred in the same quarter of fiscal 2022, but the same as a percentage of revenue at approximately 25%. For the first two quarters of fiscal 2023, it was $31.26 million, an increase from the $25.31 million in the equivalent period of the prior year. The increase over both periods is primarily the impact of the addition of the NetFortris sales and marketing expense.

<u>Research and development</u>

A portion of the Company's R&D costs are capitalized each period and amortized on a straight-line basis over three years (see the audited consolidated financial statements and related notes for the fiscal year ended June 30, 2022, available at www.sedar.com and www.sec.gov).

The research and development expenses incurred, and the development costs amortized during the three and six month periods ended December 31, 2022 were $9.23 million and $18.66 million respectively. This was higher than the $7.76 million and $16.12 million incurred in the equivalent periods of the prior year, mostly as a result of the addition of the NetFortris development team, but the same as a percentage of revenue at approximately 15%. For the quarter ended December 31, 2022, the Company did not have any significant projects that have not yet generated revenue, nor did it have any products or services that are not fully developed, and which are material to the Company.

<u>General and administration</u>

General and administration expenses were $19.52 million for the three month period ended December 31, 2022 and $38.81 million for the six month period ended December 31, 2022, compared to $18.15 million and $35.42 million in the same periods of fiscal 2022. The increased spending over both periods is driven primarily by the addition of the NetFortris team and the non-cash expense of the additional amortization of the intangible assets acquired. The Company's general and administration expenses decreased as a percentage of revenue from approximately 34% in the second quarter of fiscal 2022 to approximately 31% in the second quarter of fiscal 2023.

<u>Foreign exchange</u> 

Foreign exchange loss for the three and six month periods ended December 31, 2022 was $0.10 and $0.06 million, compared to a gain of $0.08 million and $0.07 million in the comparable periods of fiscal 2022.

<u>Total expenses</u>

Total operating expense for the three months ended December 31, 2022 was $44.26 million versus $39.19 million during the equivalent period of the prior year and $88.67 million for the six months ended December 31, 2022 compared to $76.92 million during the equivalent period of the prior year. The primary driver of the increase was the incremental expense associated with the addition of the NetFortris business, partly offset by cost savings from the integration which began in the fourth quarter of fiscal 2022 and carried through the first six months of fiscal 2023. Overall, total operating expenses increased by 13% year-over-year this quarter, whereas revenue was up by 17%, consistent with Sangoma's long term approach of growing expenses at a slower rate than revenue, demonstrating our operating leverage. The Company's total operating expense for the second quarter represented approximately 71% of revenue, a decrease from approximately 74% in the same period last year, again reflecting operating leverage and prudent management.

**Adjusted Operating Loss**

Adjusted Operating Loss for the quarter ended December 31, 2022 was $1.47 million, higher than the loss of $0.84 million in the same period last year, due to the above factors.

**Interest**

Net interest expense for the quarter ended December 31, 2022 was $1.63 million, higher than the $0.60 million in the same period last year, primarily due to the additional interest expense on the new debt from the acquisition of NetFortris, the non-cash accretion expense associated with the consideration payable and from the increases in prevailing interest rates.

 

**Business acquisition costs**

There were no business acquisition costs incurred in the quarter ended December 31, 2022 or in the same period last year.

**Business integration costs**

For the second quarter of fiscal year 2023, Sangoma recorded $0.35 million of costs directly associated with the reduction of staff between the two companies following the NetFortris acquisition. There were no integration costs in the same period of the prior year. The Company does not anticipate any additional costs in the third quarter of fiscal year 2023.

**Consideration payable**

As part of the agreement for the purchase of Star2Star, Sangoma processes certain payroll transactions for Star2Star Holdings ("Holdings") option holders each time an instalment of the remaining share consideration is distributed. This gives rise to a tax deduction for Sangoma, the benefit of which is paid to Holdings when it is realized by Sangoma. To account for this, the estimated amount is calculated each quarter and recorded as a deferred tax asset, with the associated liability to Holdings recorded as consideration payable. The amount of the potential payment is tied to Sangoma's share price, the US to Canadian dollar exchange rate and the current US tax rate. As this changes, the Company will update the potential payout. As of December 31, 2022, the changes in these factors gave rise to a decrease in the consideration payable as compared to the amount established at June 30, 2022. An equivalent offset is included in deferred tax expense. There is no cash exposure to Sangoma since the payment is only due when the tax benefit is actually realized, and the two balances will largely offset each other over time.

**Net loss**

Net loss for the second quarter was $2.73 million ($0.084 loss per share fully diluted), compared to a net loss of $2.48 million ($0.078 loss per share fully diluted) for the equivalent quarter of the prior year.

**Adjusted EBITDA**

The derivation of Adjusted EBITDA and the reconciliation of net income to Adjusted EBITDA for the comparable quarter and each fiscal year is shown in the table below.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three month periods ended** | **Three month periods ended** | **Three month periods ended** | **Three month periods ended** | **Six month periods ended** | **Six month periods ended** | **Six month periods ended** |
| | **December 31** | **December 31** | **December 31** | **December 31** | **December 31** | **December 31** | **December 31** |
|  | **2022** | 2021 | Change | Change | **2022** | 2021 | Change |
|  | **$** | $| $| **%** | **$** | $| % |
| Net loss | **(2.73)** | (2.48) | (0.25) | 10% | **(4.71)** | (4.78) | -1% |
| Tax | **(0.37)** | 0.13 | (0.50) | -385% | **0.49** | (0.17) | -388% |
| Interest expense (net) | **1.63** | 0.60 | 1.03 | 172% | **3.21** | 1.25 | 157% |
| Share-based compensation | **1.28** | 2.33 | (1.05) | -45% | **2.20** | 4.45) | -51% |
| Depreciation of property and equipment | **1.18** | 0.54 | 0.64 | 119% | **2.49** | 0.98 | 154% |
| Depreciation of right-of-use assets | **0.98** | 0.76 | 0.22 | 29% | **1.98** | 1.49 | 33% |
| Amortization of intangibles | **8.58** | 7.64 | 0.94 | 12% | **17.16** | 15.30 | 12% |
| Business integration costs | **0.35** |  | 0.35 |  | **0.40** | 0.84) | -52% |
| One-time exchange listing exchange | **-** | 1.05 | (1.05) | -100% | **-** | 1.05) | -100% |
| Change in fair value of consideration payable | **(0.35)** | (0.14) | (0.21) | 150% | **(1.93)** | 0.11) | -1855% |
| Adjusted EBITDA | **10.55** | 10.43 | 0.12 | 1% | **21.29** | 20.52 | 4% |
| Percentage of revenue | **17%** | 20% | -3% | -13% | **17%** | 20%) | -14% |

---

For the three and six month periods ended December 31, 2022, Adjusted EBITDA at $10.55 million and $21.29, respectively, was up from $10.43 million and $20.52 million in the equivalent periods of the prior year, primarily resulting from the addition of NetFortris, the underlying growth in our Services business, and the cost restructuring as part of the integration of NetFortris.

#### QUARTERLY RESULTS OF OPERATIONS
Sangoma's quarterly revenue has now exceeded the same period in the prior year for each of the last 29 quarters. Selected financial information over the prior eight quarters is shown in the table below.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Third | Fourth | First | Second | Third | Fourth | First | Second |
| | quarter | quarter | quarter | quarter | quarter | quarter | quarter | quarter |
| | 2021 | 2021 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 |
| Sales | $27.95 | $50.12 | $51.50 | $53.19 | $53.37 | $66.29 | $64.05 | $62.04 |
| Gross Profit | $18.32 | $35.88 | $36.87 | $38.35 | $37.20 | $44.47 | $43.34 | $42.79 |
| Expenses | $15.76 | $37.78 | $37.73 | $39.19 | $40.14 | $45.71 | $44.41 | $44.26 |
| Adjusted operating loss | $2.56 | $(1.90) | $(0.86) | $(0.84) | $(2.94) | $(1.24) | $(1.07) | $(1.47) |
| Net loss | $(1.78) | $(1.29) | $(2.30) | $(2.48) | $(6.76) | $(99.25) | $(1.98) | $(2.73) |
| Loss per share |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-diluted basis | $(0.112) | $(0.041) | $(0.073) | $(0.078) | $(0.212) | $(2.987) | $(0.060) | $(0.084) |
| &nbsp;&nbsp;&nbsp;Fully diluted basis | $(0.112) | $(0.041) | $(0.073) | $(0.078) | $(0.212) | $(2.987) | $(0.060) | $(0.084) |
| Adjusted EBITDA | $5.35 | $9.78 | $10.09 | $10.43 | $10.47 | $11.13 | $10.74 | $10.55 |

---

**Sales and Net Income by Quarter**

Revenues over the comparative periods have been positively impacted by the acquisitions of NetFortris in March 2022, the acquisition of Star2Star in March 2021, the organic growth within the existing Services business, as well as an uptick in some quarters for the Product business. The most recent two quarters have seen a decline in the Product business, resulting in a slight decrease in revenue during those periods, due to the reasons outlined earlier, namely customers continue to be more sensitive to Capex purchases (given current economic headwinds), to the supply chain conditions, and the impact of a strong US dollar exchange rate on some international order flow.

In line with revenue, cost of sales, gross profit, operating expenses, and Adjusted EBITDA have all increased over the comparable periods. In addition, cost of goods has been impacted by the related global supply chain pressures, for both electronic components and for shipping. In some cases, Sangoma has needed to order further ahead, pay more for electronic components, and to ship product by air versus by sea at higher cost.

#### LIQUIDITY AND CAPITAL RESOURCES
As of December 31, 2022, Sangoma had current assets of $55.21 million and current liabilities of $71.14 million, compared with $60.31 million and $78.41 million at June 30, 2022, respectively. The decrease in assets is primarily a result of the repayment of debt and certain tax payments which were made in the first two quarters, while the decrease in liabilities is primarily a result of the repayment of debt.

The Company closed the second quarter with $6.80 million of cash compared to $12.70 million at June 30, 2022. The Company used a portion of its cash to continue paying down the debt associated with its most recent acquisition, investment in capitalized development costs, and in the share buyback program under our normal course issuer bid (the "NCIB").

Trade receivables of $16.67 million on December 31, 2022, were slightly higher than the $16.05 million on June 30, 2022, primarily as a result of the addition of NetFortris and from the growth in our business, and down sightly from the immediately prior quarter when they were $17.22 million.

Inventories were $19.30 million on December 31, 2022, $1.87 million higher than the $17.43 million at June 30, 2022, primarily reflecting the inventory build undertaken to contend with the supply chain pressures described earlier, in combination with softer Product sales in the first two quarter of fiscal 2023.

Sangoma generated $4.77 million of Adjusted Cash Flow from operations during the second fiscal quarter of 2023 ended December 31, 2022, compared to $3.80 million in the same quarter last year. The reconciliation of net cash flows from operating activities to Adjusted Cash Flow for the three and six month periods of fiscal 2022 and 2023 are shown in the table below.

---

| | | |
|:---|:---|:---|
| | **Three month periods ended**<br>**December 31** | **Six month periods ended**<br>**December 31** |
|  | Change | Change |
|  | % | % |
| Net cash flows from operating activities | 88% | 30% |
| Less capitalization of development costs) | 379%) | 399% |
| Interest expense | 166% | 153% |
| Business integration costs | 0%) | -52% |
| Exchange listing expense | -100% | -100% |
| **Adjusted cash flow from operations** | 26% | -10% |

---

There are no existing or anticipated defaults or arrears on lease payments or interest payments and Sangoma is in full compliance with all debt covenants. Management of the Company believes that the current working capital and expected funds generated from operations will be sufficient to meet the operating and planned capital expenditures of the Company for the foreseeable future.

**Credit Facility**

On October 18, 2019, the Company entered into a new credit agreement (the "Original Credit Agreement") in favour of its subsidiaries, Sangoma Technologies Inc. and Sangoma US Inc. (the "Borrowers") with *inter alia* The Toronto-Dominion Bank and The Bank of Montreal, as lenders (the "Lenders"). Under the terms of the Original Credit Agreement, the Lenders provided the Borrowers with a term loan facility to refinance the Company's existing credit facilities and to fund part of the purchase of VI Acquisition.

On March 31, 2021, the Company entered into an amended and restated credit agreement (the "Amended and Restated Credit Agreement") which amended and restated the Original Credit Agreement to allow the Company to fund part of the StarBlue Acquisition.

On March 28, 2022, the Company entered into the Second Amended and Restated Credit Agreement (the "Second Amended and Restated Credit Agreement") which amended and restated the Amended and Restated Credit Agreement to allow the Company to fund part of the NetFortris Acquisition. The Second Amended and Restated Credit Agreement is comprised of: (i) a $6 million revolving credit facility, (ii) a $21.75 million term credit facility, which was used to partially fund the VI Acquisition (iii) a $45.94 million term credit facility, which was used to partially fund the StarBlue Acquisition, (iv) a $45 million term credit facility, which was used to partially fund the NetFortris Acquisition (the "Term 3 Facility"), and (v) a $1.5 million swingline credit facility.

On June 28, 2022, the Company entered into the first amendment to the Second Amended and Restated Credit Agreement to reflect certain administrative amendments and to amend the amount of the Term 3 Facility quarterly principal installments.

On October 19, 2022, the Company drew down $3 million from the revolving credit facility and as of December 31, 2022, the amount remains outstanding.

Under its Second Amended and Restated Credit Agreement with its lenders, the Company must satisfy certain financial covenants, principally in respect of total funded debt to earnings before interest, taxes and amortization, and debt service coverage ratio. As at December 31, 2022, the Company was in compliance with all covenants related to its Credit Agreement.

#### CONTRACTUAL OBLIGATIONS
The following table shows the movement in contractual liabilities from July 1, 2022 to December 31, 2022:

---

| |
|:---|
| Opening balance, July 1 , 2021 |
| Revenue deferred during the period |
| Deferred revenue recognized as revenue during the period) |
| Additions through business combination (Note 20) |
| Ending balance, June 30, 2022 |
| Revenue deferred during the period |
| Deferred revenue recognized as revenue during the period) |
| **Ending balance, December 31, 2022** |
| **Contract liabilities - Current** |
| **Contract liabilities - Non-current** |

---

**Commitments**

The table below outlines our contractual commitments as of December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **within 12 months** | **12-24 months** | **24-36 months** | **>36 months** | **Total** |
|  | $| $| $| $| **$** |
| Accounts payable and accrued liabilities | 23.82 |  |  |  | **23.82** |
| Sales tax payable | 5.76 |  |  |  | **5.76** |
| Consideration payable | 10.25 | 0.63 | 0.63 | 0.25 | **11.76** |
| Operating facility and loans | 17.70 | 17.70 | 22.78 | 40.60 | **98.78** |
| Lease obligations on right of use assets | 3.56 | 3.10 | 2.72 | 8.45 | **17.83** |
| Other non-current liabilities | - | - | - | 1.00 | **1.00** |
|  | **61.09** | **21.43** | **26.13** | **50.30** | **158.95** |

---

#### OFF-BALANCE SHEET ARRANGEMENTS
There are no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on the results of operations or financial condition of Sangoma.

#### RELATED PARTY TRANSACTIONS
Except as disclosed in the notes to the consolidated financial statements, the Company is not party to any material transactions with related parties.

#### CRITICAL ACCOUNTING POLICIES AND ESTIMATES
The preparation of our consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We review these estimates on an ongoing basis based on management's best knowledge of current events and actions that we may undertake in the future. Actual results could differ from these estimates. All significant estimates and critical judgments, estimates, and assumptions are described in Note 3 of the Company's Financial Statements.

#### FINANCIAL INSTRUMENTS AND OTHER INSTRUMENTS
The fair values of the cash and cash equivalents, trade and other receivables, derivative assets, contract assets, other current assets, accounts payable and accrued liabilities, consideration payable and derivative liabilities approximate their carrying values due to the relatively short-term nature of these financial instruments or as these financial instruments are fair valued at each reporting period. The fair values of operating facility and loans approximate their carrying values due to variable interest loans or fixed rate loan, which represent market rate. Further details relating to our financial instruments, the risks associated with the financial instruments and how we manage those risks, are described in Note 4 of the Company's Financial Statements.

#### SIGNIFICANT EVENTS  
*Normal Course Issuer Bid*

In the fourth quarter of fiscal 2022, the Company announced its intention to make an NCIB with respect to its Shares. Pursuant to the NCIB, Sangoma may, during the 12-month period commencing June 23, 2022 and ending no later than June 22, 2023, purchase up to 1,071,981 shares, representing 5% of the total number of 21,439,632 Shares outstanding, through the facilities of the TSX, the Nasdaq Global Select Market or alternative Canadian trading systems. Sangoma also entered into an automatic share purchase plan with a designated broker to allow for the purchase of Shares under the NCIB at times when the Company would ordinarily not be permitted to purchase Shares due to self-imposed blackout periods, insider trading rules or otherwise.

Under the terms of the NCIB, during the six month period ended December 31, 2022, the Company purchased a total of 103,122 shares at an average price of $5.42 per share, for total consideration of $0.56 million.

#### OUTSTANDING SHARE INFORMATION
We are currently authorized to issue an unlimited number of shares. As of the date hereof, 23,038,226 shares, 911,902 stock options and 655,000 share units are issued and outstanding.

In accordance with the StarBlue share purchase agreement, 10,000,000 shares remain to be issued over the next three years. Following the remaining quarterly issuances of the StarBlue shares, the Company will have 33,036,578 shares outstanding.

#### GUIDANCE
On September 26, 2022 and November 10, 2022, the Company provided and maintained guidance for fiscal 2023 of revenue between $275 - $285 million and Adjusted EBITDA of $48 - $52 million. Given the results for the first two quarters of fiscal 2023 and the current assumptions as described below, including global economics, the Company is lowering its revenue guidance to $250 - $260 million and its Adjusted EBITDA guidance to $46 - $49 million.

The above outlook constitutes forward-looking information and is based on the Company's assessment of many material assumptions, including:

&nbsp;&nbsp;&nbsp;&nbsp;• The Company's ability to manage current supply chain constraints, including our ability to secure
electronic components and parts, manufacturers being able to deliver ongoing quantities of finished products on schedule, no further material
increases in cost for electronic components, and no significant delay or material increases in cost for shipping

&nbsp;&nbsp;&nbsp;&nbsp;• The revenue trends the Company experienced in fiscal year 2022 and fiscal 2023 to-date, the trends we
expect going forward in fiscal 2023, and the impact of growing economic headwinds globally

&nbsp;&nbsp;&nbsp;&nbsp;• The continuing recovery of the global economy from the impact of COVID-19, including decreased government
restrictions and increased customer demand, all of which would not be materially negatively affected by more recent macro factors such
as inflation, interest rates, or recessions

&nbsp;&nbsp;&nbsp;&nbsp;• The successful integration of NetFortris, the achievement of post-closing synergies, and the ability to
cross-sell NetFortris and Sangoma's products and services to the other's customer base

&nbsp;&nbsp;&nbsp;&nbsp;• The NetFortris business continuing to operate and generate results in a manner consistent with its business
preceding its acquisition by the Company and as anticipated by us

&nbsp;&nbsp;&nbsp;&nbsp;• There being continuing growth in the global UCaaS and cloud communications markets more generally

&nbsp;&nbsp;&nbsp;&nbsp;• There being continuing demand and subscriber growth for our Services and continuing demand as anticipated
for our Products

&nbsp;&nbsp;&nbsp;&nbsp;• The impact of changes in global exchange rates on the demand for the Company's Products and Services

&nbsp;&nbsp;&nbsp;&nbsp;• The ability of the Company's customers to continue their business operations without any material
impact on their requirements for the Company's Products and Services

&nbsp;&nbsp;&nbsp;&nbsp;• The Company's forecasted revenue from its internal sales teams and via channel partners will meet
current expectations, which is based on certain management assumptions, including continuing demand for the Company's products and
services, no material delays in receipt of products from its contract manufacturers, no further material increase to the Company's
manufacturing, labor or shipping costs

&nbsp;&nbsp;&nbsp;&nbsp;• There are no additional revenue reclassifications

&nbsp;&nbsp;&nbsp;&nbsp;• The Company is able to remediate the material weaknesses identified in its internal control over financial
reporting

&nbsp;&nbsp;&nbsp;&nbsp;• That the Company is able to attract and keep the employees needed to maintain the current momentum

&nbsp;&nbsp;&nbsp;&nbsp;• The continued ability for the Company's operational employees to work at the Company's internal
and outsourced facilities

&nbsp;&nbsp;&nbsp;&nbsp;• Other employees being able to work from home as required without any material impact on productivity

#### CONTROLS AND PROCEDURES
Management of the Company, under the supervision of the Chief Executive Officer and Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over financial reporting ("ICFR") (as defined under applicable Canadian securities laws and by the United States Securities and Exchange Commission ("SEC") in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") for the company to ensure that (i) material information relating to the Company is made known to management by others, particularly during the period in which the annual and interim filings are being prepared; and (ii) information required to be disclosed by the Company in its annual and interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time period specified in securities legislation.

Management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer and oversight of the Board of Directors evaluated the effectiveness of our ICFR as of December 31, 2022 against the criteria set forth in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based upon the evaluation, management has concluded that, because of the material weakness described in our management discussion & analysis for the year ended June 30, 2022 (the "Fiscal 2022 Annual MD&A"), as of such date, the Company's disclosure controls and procedures were not effective.

 

 

 

 

 

*Remediation of Material Weakness in ICFR*

As previously described in our Fiscal 2022 Annual MD&A, management has initiated remediation efforts to address the material weakness identified in its Fiscal 2022 Annual MD&A, as well as to foster improvement in the Company's internal control and enhance the overall financial control environment.

While we believe that the efforts taken to date and those planned for remediation will improve the effectiveness of our internal control over financial reporting, the material weakness will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.

#### GLOSSARY OF TERMS
<u>Analog</u>

Analog telephony is the telephone system that dates back to the original experiments by Alexander Graham Bell. The voice signal is picked up by a microphone and transmitted to the central office. Voice signals from the central office consist of voltages that drive a headset to produce sound. Analog means that the voice pressure signals are represented by voltages levels on the line.

<u>API</u>

Application Program Interface: An API is a purpose-built interface that allows fourth party software to interact with a particular application. A typical API is the user interface for Windows that allows programmers to write programs for Windows that use all its built-in utilities. APIs do not depend on revealing source code, in general. They are usually well documented and include sample programs that make development easy.

<u>Codec</u>

In the telephony context a codec is a mechanism of digitally encoding voice. On the PSTN a voice channel takes up 64kbps in a codec standard called G.711. Cell phones use a codec called GSM that compresses the voice further so that a GSM call consumes about 24kbps. Other compressed codecs are used in VoIP to conserve bandwidth. These include standards such as G.729, G.723. Most audio codecs are lossy, in that some of the voice quality is degraded by the compression. On the other hand, as bandwidth becomes cheaper, VoIP allows one to use other codecs that in fact use more bandwidth than the PSTN, the so-called broadband codecs that have DVD-like voice quality.

<u>Digital telephony</u>

In the modern PSTN only the "last mile" line to the customer is still analog, all other internal parts of the network are digital. Digital in this case means that at the central office the analog signal from the subscriber's telephone is sampled digitally, converting the line voltages to a series of numbers that can be easily transmitted error free over long distances. See T1, E1 below.

<u>DID</u>

Direct Inward Dialing ("DID") is a virtual phone number that uses the existing phone lines to route incoming calls. Callers can connect to a phone extension directly without an operator. This offers convenience for both employees and callers alike. DID offers a cost saving on its own and is less expensive when purchased with a SIP trunk.

<u>Gateway</u>

In the telephony context this is typically a separate unit with its own case and power supply that provides VoIP-to-PSTN services for a VoIP network. Almost all gateway devices use SIP interfaces to the VoIP system over Ethernet and have analog or digital telephony interfaces that connect to the PSTN. VoIP gateways are available from many manufacturers including Audiocodes, Cisco, Grandstream, Patton Electronics and many others.

<u>ISDN</u>

Integrated Services Digital Network ("ISDN") is a set of communications standards for simultaneous digital transmission of voice, video, data, and other network services over the traditional circuits of the public switched telephone network. Of the many variations of ISDN, Sangoma supports BRI (Basic Rate Interface) which is essentially an all-digital replacement for ordinary analog lines and PRI (Primary Rate Interface) which is used over T1 and E1 lines. BRI is very popular outside of North America. PRI is used worldwide.

<u>IoT</u>

Internet of Things ("IoT") refers to a system of interrelated, internet-connected objects that are able to collect and transfer data over a wireless network without human intervention.

<u>IP</u>

The Internet Protocol ("IP") is the primary protocol in the internet layer of the Internet protocol suite, and delivers data packets from the source host to the destination host solely based on the IP address.

<u>ISP</u>

Internet Service Provider

<u>ITSP</u>

Internet Telephony Service Provider who offer telecommunications service including voice over internet type connections.

<u>IVR</u>

Interactive Voice Response: IVR systems use the phone to navigate a menu, for example those used by banks to allow access to customer's account information. IVR systems have typically been driven by dial tones as the buttons on your phone are pressed, but increasingly they are using voice recognition for navigation.

<u>Open Source</u>

Open Source software is distributed free subject to certain conditions. Open Source licenses usually stipulate that source code must always be distributed or made available, and any improvements in the code have to be donated back to the community. It is possible to have dual licensing: Open Source to the community and also a closed, commercial license of the same or similar software.

<u>NetBorder</u>

This is the trade name of a Sangoma SIP to PSTN gateway product. It includes several other functions in addition to the PSTN gateway function. The mass marketed version is known as NetBorder Express or NBE.

<u>PBX</u>

Private branch exchange. A PBX is a premised basis device to deliver calls from the PSTN or VOIP network to phones in a single or multiple locations.

<u>PSTN</u>

Public Switched Telephone Network: This is the standard telephone network that has been in operation for many decades. A telephone or FAX or PBX or other telephony device is generally connected to an analog line at a wall plug, which is connected by "last mile" cabling to the central office. The analog signal from the device is converted to a digital signal at the Telco central office and is multiplexed, 24 simultaneous voice channels per line (in North America) onto a T1 for onward transmission. At the other end of the line the digital channel is reconverted to analog for transmission over the "last mile" to the receiving phone or other device.

<u>SBC</u>

A Session Border Controller ("SBC") is a device deployed in Voice over Internet Protocol ("VoIP") networks to exert control over the signaling and usually also the media streams involved in setting up, conducting, and tearing down telephone calls or other interactive media communications. SBCs are deployed as demarcation points between enterprises and service providers and between service provider networks.

<u>SD-WAN</u>

A Software-defined Wide Area Network ("SD-WAN") uses software to control and manage connectivity across a customers wide area network. While traditional wide area networks rely on physical routers to connect remote users, this centralized software solution can help customers monitor their performance of the network and manage traffic.

<u>Signalling</u>

Call setup and tear down is remarkably complicated, involving such things as responding to the different tones as well as generating them, caller identification and handling the different features like hook-flash and voicemail properly. There are different signalling mechanisms for different types of circuits. Analog circuits use tones such as out-of-order, busy, ringing as well as the dialling tones. T1 lines often use a data protocol called ISDN PRI, where packets of control data are exchanged on a separate data channel. ISDN PRI is a simplification of the general signalling protocol used internally by the telecommunications networks known as SS7. In all cases signalling has to be exactly compatible with what the Telco expects, so interoperability and standards are important.

<u>SIP</u>

Session Initiation Protocol: SIP is the emerging standard signalling protocol for VoIP, though it has much broader applications. SIP is responsible for setting up and teardown of two party and multiparty calls, as well as a host of management features. To a great and increasing extent, VoIP calls are SIP based. The term SIP Trunk is used to describe the provision of a SIP line to an end customer.

<u>T1, E1</u>

A T1 line is a circuit that carries 24 digital telephone calls simultaneously. At higher densities, 28 T1s are aggregated into a T3 line carrying 672 calls. Larger offices can also connect to the central office via T1 directly, so as to have only one circuit for up to 24 calls. T1 is standard in North America and Japan while E1 is the standard in the rest of the world. E1 carries 30 channels of digitized voice per line.

<u>TDM</u>

Time Division Multiplexing ("TDM") is used in circuit switched networks to increase the number of calls carried simultaneously on any one circuit and formed the basis for the digital telephony networks.

<u>Unified Communications</u>

Unified communications is a concept in which voice, email, messaging, video and any other type of communication are all considered forms of data that can be combined, manipulated and used in intelligent applications in a seamless way.

<u>VoIP</u>

Voice over IP: The transfer of voice traffic over the Internet Protocol. IP is used universally for all networking including local area networks and private networks, not just the Internet. VoIP is not necessarily voice over the Internet, but voice over general data networks.

## Exhibit 99.3

**EXHIBIT 99.3**

**Sangoma Announces Second Quarter Fiscal 2023 Results**

**Revenue increases 17% year-over-year, with Services Revenue growing 35% versus Q2 last year**

MARKHAM, Ontario, Feb. 09, 2023 (GLOBE NEWSWIRE) -- Sangoma Technologies Corporation (TSX: STC; Nasdaq: SANG) ("Sangoma" or the "Company"), a trusted leader in delivering cloud-based Communications as a Service solutions for companies of all sizes, today announced its second quarter financial results and unaudited consolidated financial statements for the fiscal quarter ended December 31, 2022.

Revenue for the second quarter of fiscal 2023 was $62.04 million, an increase from the prior year of 17%.

As a reminder, Sangoma completed its acquisition of NetFortris on March 28, 2022.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**US $m** | &nbsp;&nbsp;**Q2 FY2023** | **Q2 FY2022** | &nbsp;&nbsp;**Change** | **Q1 FY2023** | &nbsp;&nbsp;**Change** |
| &nbsp;&nbsp;Revenue | $62.04 | $53.19 | 17% | $64.05 | (3%) |
| &nbsp;&nbsp;Gross profit | $42.79 | $38.35 | 12% | $43.34 | (1%) |
| &nbsp;&nbsp;Operating expense | $44.26 | $39.19 | 13% | $44.41 | (0%) |
| &nbsp;&nbsp;Adjusted operating loss | ($1.47) | ($0.84) |  | ($1.07) |  |
| &nbsp;&nbsp;Net loss | ($2.73) | ($2.48) |  | ($1.98) |  |
| &nbsp;&nbsp;Net loss per share<sup>2</sup> (fully diluted) | ($0.084) | ($0.078) |  | ($0.060) |  |
| &nbsp;&nbsp;Adjusted EBITDA<sup>1</sup> | $10.55 | $10.43 | 1% | $10.74 | (2%) |

---

"The second quarter was a challenging one given the economic headwinds that most all companies are facing, so in light of that, I'm very pleased with the growth in our Services business and our ability to protect both profitability and cash flow this quarter," said Bill Wignall, President and CEO. "It is gratifying to see our hard work over many years to build towards a pure SaaS business, continue to bear fruit in Q2, with our Services revenue increasing by 2.3% sequentially from the prior quarter, equivalent to an annualized rate of almost 10%, during these uncertain economic times. Services represented over 79% of our total sales this quarter, up from 75% last quarter, 71% last year and 62% the year before. And while our Services business continues to grow and compound, our Product revenue was materially impacted this quarter by macro conditions, as customers became more sensitive to capex purchases, given the current uncertainty. Despite a modest overall revenue decline, our Adjusted EBITDA remained strong for the quarter at over $10 million, holding at about 17% of revenue. While we are updating guidance given the macro environment and year-to-date results, we remain highly confident in the financial health of our business and are very excited about Sangoma's future prospects."

Revenue for the fiscal second quarter was $62.04 million, up from $53.19 million in the second quarter last year by 17%, and down by approximately 3% from the immediately preceding first quarter of fiscal 2023. Services revenue increased sequentially by over $1 million or by 2.3% from the previous quarter, exceeding 79% of total sales. Softness in Product revenue resulted from customer sensitivity to capex purchases given economic headwinds, the evolving supply chain environment, and the strong US dollar affecting international purchases.

Gross profit for the quarter was $42.79 million, up from $38.35 million in the same period last year. Gross margin at 69% of revenue for the quarter was slightly above the 68% in the first quarter of fiscal 2023. This level of gross margin is at the upper end of our expectations for fiscal year 2023.

Operating expenses were $44.26 million for the quarter compared to $39.19 million in the second quarter of fiscal year 2022. The year over year increase reflects the added costs associated with the NetFortris acquisition.

Adjusted EBITDA<sup>1</sup> was $10.55 million in the second fiscal quarter of 2023, up slightly from the $10.43 million in the same period of the prior year, and was approximately 17% of sales, which is consistent with the immediately preceding quarter.

Net loss for the second quarter was $2.73 million as compared to $2.48 million for the second quarter of fiscal 2022.

Sangoma continues to generate positive Adjusted Cash Flow<sup>1</sup> and maintain a healthy balance sheet, finishing the quarter with a cash balance of $6.80 million on December 31, 2022 and remains comfortably within its debt covenants.

**Outlook for fiscal year 2023**

Given the results for the first two quarters of fiscal 2023 and in light of the items below including global economics, the Company is lowering its revenue guidance from $275 – $285 million to $250 - $260 million and its Adjusted EBITDA guidance from $48 - $52 million to $46 - $49 million.

The above outlook and guidance constitute forward-looking information and are based on the Company's assessment of many material assumptions, including:

* The Company's ability to manage current supply chain constraints, including our ability to secure electronic components and parts, manufacturers being able to deliver ongoing quantities of finished products on schedule, no further material increases in cost for electronic components, and no significant delay or material increases in cost for shipping

* The revenue trends the Company experienced in fiscal year 2022 and fiscal 2023 to-date, the trends we expect going forward in fiscal 2023, and the impact of growing economic headwinds globally

* The continuing recovery of the global economy from the impact of COVID-19, including decreased government restrictions and increased customer demand, all of which would not be materially negatively affected by more recent macro factors such as inflation, interest rates, or recessions

* The successful integration of NetFortris, the achievement of post-closing synergies, and the ability to cross-sell NetFortris and Sangoma's products and services to the other's customer base

* The NetFortris business continuing to operate and generate results in a manner consistent with its business preceding its acquisition by the Company and as anticipated by us

* There being continuing growth in the global UCaaS and cloud communications markets more generally

* There being continuing demand and subscriber growth for our Services and continuing demand as anticipated for our Products

* The impact of changes in global exchange rates on the demand for the Company's Products and Services

* The ability of the Company's customers to continue their business operations without any material impact on their requirements for the Company's Products and Services

* The Company's forecasted revenue from its internal sales teams and via channel partners will meet current expectations, which is based on certain management assumptions, including continuing demand for the Company's products and services, no material delays in receipt of products from its contract manufacturers, no further material increase to the Company's manufacturing, labor or shipping costs

* There are no additional revenue reclassifications

* The Company is able to remediate the material weaknesses identified in its internal control over financial reporting

* That the Company is able to attract and keep the employees needed to maintain the current momentum

* The continued ability for the Company's operational employees to work at the Company's internal and outsourced facilities

* Other employees being able to work from home as required without any material impact on productivity

**Conference call**

Sangoma will host a conference call on Friday, February 10, 2023, at 8:00 am EST to discuss these results. The dial-in number for the call is 1-800-319-4610 (International 1-604-638-5340). Participants are requested to dial in 5 minutes before the scheduled start time and ask to join the Sangoma call.

<sup>1</sup> Adjusted Operating Income, Adjusted EBITDA and Adjusted Cash Flow are non-IFRS financial measures used by the Company to monitor its performance and definitions of these terms along with reconciliation to the closest IFRS measure may be found in the accompanying MD&A on pages 3, 13, 17 and 18 posted today at www.sedar.com and www.sec.gov.

**About Sangoma Technologies Corporation**

Sangoma Technologies is a trusted leader in delivering value-based Communications as a Service (CaaS) and Managed Service Provider ("MSP") solutions for businesses of all sizes, including Managed Security, Managed SD-WAN and Managed Access. Sangoma's cloud-based communication services include Unified Communication (UCaaS) business communications, Contact Center as a Service (CCaaS), Video Meetings as a Service (MaaS), Collaboration as a Service (Collab aaS), Communications Platform as a Service (CPaaS), Trunking as a Service (TaaS), Fax as a Service (FaaS), Device as a Service (DaaS), and Access Control as a Service (ACaaS). In addition, Sangoma offers a full line of communications Products, including premise-based UC systems, a full line of desk phones and headsets, and a complete connectivity suite (gateways/SBCs/telephony cards). Sangoma's products and services are used in leading UC, PBX, IVR, contact center, carrier networks, office productivity, and data communication applications worldwide. Sangoma is also the primary developer and sponsor of Asterisk and FreePBX, the world's two most widely used open-source communication software projects.

Sangoma Technologies Corporation is publicly traded on the Toronto Stock Exchange (TSX: STC) and Nasdaq (Nasdaq: SANG). Additional information on Sangoma can be found at: <u>www.sangoma.com</u><u>.</u> 

**Cautionary Statement Regarding Forward Looking Statements**

This press release contains forward-looking statements, including statements regarding the expected fiscal 2023 financial results and the future success of our business, development strategies and future opportunities.

Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking statements include, but are not limited to, statements relating to management's guidance on revenue and Adjusted EBITDA, and other statements which are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should" and similar expressions indicate forward-looking statements.

Although Sangoma believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve inherent risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements, if at all. Forward-looking statements are based on the opinions and estimates of management at the date that the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected, estimated or anticipated in forward-looking statements.

Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other events contemplated by the forward-looking statements will not occur. Although Sangoma believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct as these expectations are, therefore, inherently subject to business, economic and competitive uncertainties and contingencies. Some of the risks and other factors which could cause actual results to differ materially from those expressed or implied in the forward-looking statements contained in its management's discussion and analysis, annual information form and management information circular (each available on <u>www.sedar.com</u>) include, but are not limited to, risks and uncertainties associated with the integration of NetFortris, the remediation of material weaknesses, the impact of the continuing COVID-19 pandemic, changes in exchange rate between the United States dollar and other currencies, expectations regarding the amount of frequency of impairment losses, including as a result of the write-down of intangible assets, including goodwill, delay in project deliveries, changes in technology, changes in the business climate, changes to macroeconomic conditions, including rising interest rates and the occurrence of (or fears of an impending) economic recession, risks related to the COVID-19 (coronavirus) pandemic, changes in the regulatory environment, the imposition of tariffs, the decline in the importance of the PSTN (as hereinafter defined), impairment of goodwill and new competitive pressures, and acts of terrorism and war, hostilities and conflicts, including, but not limited to, Russia's invasion of Ukraine in February 2022. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Sangoma undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by law.

Sangoma Technologies Corporation

Larry Stock

Chief Financial Officer

(256) 428-6285

investorrelations@sangoma.com

## Exhibit 99.4

**EXHIBIT 99.4**

**FORM 52-109F2<br> CERTIFICATION OF INTERIM FILINGS<br> FULL CERTIFICATE**

<br> I, William Wignall, President and Chief Executive Officer of Sangoma Technologies Corporation, certify the following:

<br> 1. ***Review:*** I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Sangoma Technologies Corporation (the "issuer") for the interim period ended December 31, 2022.

<br> 2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

<br> 3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

<br> 4. ***Responsibility:*** The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*, for the issuer.

<br> 5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance
that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. material information relating to the issuer is made known to us by others, particularly during the period
in which the interim filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. information required to be disclosed by the issuer in its annual filings, interim filings or other reports
filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified
in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's
GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is Internal Control – Integrated Framework (COSO 2013 Framework) published by The Committee of Sponsoring Organizations of the Treadway Commission.<br>

<br> 5.2 **ICFR – material weakness relating to design:** The issuer has disclosed in its interim MD&A for each material weakness relating to design existing at the interim period:

(a) a description of the material weakness;

(b) the impact of the material weakness on the issuer's financial reporting and its ICFR; and

(c) the issuer's current plans, if any, or any actions already undertaken, for remediating the

material weakness.

5.3 N/A

6. ***Reporting changes in ICFR:*** The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on October 1, 2022 and ended on December 31, 2022 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

---

| |
|:---|
| Date: February 9, 2023 |
| *"William Wignall"* |
| President and Chief Executive Officer |

---

## Exhibit 99.5

**EXHIBIT 99.5**

**FORM 52-109F2<br> CERTIFICATION OF INTERIM FILINGS<br> FULL CERTIFICATE**

<br> I, Larry Stock, Chief Financial Officer of Sangoma Technologies Corporation, certify the following:

<br> 1. ***Review:*** I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Sangoma Technologies Corporation (the "issuer") for the interim period ended December 31, 2022.

<br> 2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

<br> 3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

<br> 4. ***Responsibility:*** The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*, for the issuer.

<br> 5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance
that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. material information relating to the issuer is made known to us by others, particularly during the period
in which the interim filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. information required to be disclosed by the issuer in its annual filings, interim filings or other reports
filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified
in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's
GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is Internal Control – Integrated Framework (COSO 2013 Framework) published by The Committee of Sponsoring Organizations of the Treadway Commission.

5.2 **ICFR – material weakness relating to design:** The issuer has disclosed in its interim MD&A for each material weakness relating to design existing at the interim period:

(a) a description of the material weakness;

(b) the impact of the material weakness on the issuer's financial reporting and its ICFR; and

(c) the issuer's current plans, if any, or any actions already undertaken, for remediating the

material weakness.

5.3 N/A

6. ***Reporting changes in ICFR:*** The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on October 1, 2022 and ended on December 31, 2022 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

---

| |
|:---|
| Date: February 9, 2023 |
| *"Larry Stock"* |
| Chief Financial Officer |

---