Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 102

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 102
---
 March 31, 2024. Complexity did not have significant capital
expenditures or significant noncash activity during the periods presented.

18.
Subsequent events

Gigamoon
CD – Disposal of Faze Media

As
previously disclosed, on November 13, 2024, the Company and Gigamoon entered into a senior secured convertible promissory note in the
principal amount of $10 million (the “Gigamoon CD”). On April 2, 2025, GameSquare and Gigamoon entered into an exchange agreement,
effective April 1, 2025, pursuant to which, the parties agreed to accelerate the exercise date under the Gigamoon CD to April 1, 2025.
As a result, on April 1, 2025, GameSquare transferred the 5,725,000 shares of Series A-1 Preferred Stock of Faze Media Inc. to Gigamoon. This represented all of the remaining shares of Faze Media held by the Company, resulting in disposal of Faze Media.
As there was no formal plan in place to dispose of Faze Media and the disposal was contingent upon the option holder exercising its option
to acquire the remaining shares of Faze Media, which was not in the Company’s control, the held for sale criteria was not met as
of the balance sheet date. The Company will reflect Faze Media as discontinued operations in its second quarter financial statements when
the sale occurred.

22

ITEM
2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Unless
the context otherwise requires, all references in this section to the “Company,” “GameSquare,” “we,”
“us,” or “our” refer to GameSquare Holdings, Inc. and its subsidiaries and/or the management and employees of
the Company.

The
following discussion and analysis provide information which our management believes is relevant to an assessment and understanding of
our results of operations and financial condition. This discussion and analysis should be read together with our audited consolidated
financial statements and related notes included in Part I of this Form 10-Q. This discussion and analysis should also be read together
with our financial information for the year ended and as of December 31, 2024. In addition to historical financial information, this
discussion and analysis contains forward-looking statements that reflect our plans, estimates, and beliefs that involve risks, uncertainties
and assumptions. As a result of many factors,