Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 94

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 94
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 from custom
service contracts are determined on the percentage of completion method, based on the ratio of contract timepassed in the reporting period
over estimated total length of the contract.

Consulting
fees and other revenues

Consulting
fees and other revenues are recognized when the services have been performed.

Software-as-a-service

The
Company enters into license agreements with customers for its content management system, video software, and mobile applications (Frankly),
e-sports data platform (Stream Hatchet) and an influencer marketing platform (SideQik). These license agreements, generally non-cancellable,
without paying a termination penalty, and multiyear, provide the customer with the right to use the Company’s application solely
on a Company-hosted platform or, in certain instances, on purchased encoders. The license agreements also entitle the customer to technical
support.

Revenue
from these license agreements is recognized ratably over the license term. Early termination fees are recognized when a customer ceases
use of agreed upon services prior to the expiration of their contract. These fees are recognized in full on the date the customer has
completed their migration of the Company’s solutions and there is no continuing service obligation to the customer.

The
Company charges its customers for the optional use of its content delivery network to stream and store videos. The revenue is recognized
as earned based on the actual usage because it has stand-alone value and delivery is in control of the customer. The Company also charges
its customers for the use of its ad serving platform to serve ads under local advertising campaigns. The Company reports revenue as earned
based on the actual usage.

43

The
Company assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. When
the Company acts in the capacity of an agent rather than as the principal in a transaction, the revenue recognized is the net amount
of commission made by the Company.

Deferred
revenue consists of customer advances for Company services to be rendered that will be recognized as income in future periods.

Income
taxes

Income
tax on the profit or loss for the periods presented comprises current and deferred tax. Income tax is recognized in profit or loss except
to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity.

Current
tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year
end, adjusted for amendments to tax payable with regards to previous years