Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 751

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 751
---
 as are the Company’s expenses in prosecuting
and defending these actions. From time to time the Company may modify litigation strategy and/or the terms on which it retains counsel
and other professionals in connection with such actions, which may affect the outcomes of and/or the expenses incurred in connection
with such actions.

The
Company is subject to various other claims, lawsuits and other complaints arising in the ordinary course of business. The Company records
provisions for losses when claims become probable, and the amounts are estimable. Although the outcome of such matters cannot be determined,
it is the opinion of management that the final resolution of these matters will not have a material adverse effect on the Company’s
financial condition, operations, or liquidity.

19. Discontinued
                                                                                    operations and assets held for sale

As
discussed in Note 4, on March 1, 2024, the Company sold Complexity and recognized a gain on disposition of $3.0 million, resulting in
Complexity meeting the requirements for presentation as discontinued operations. Prior to disposition, Complexity was part of the Teams
operating and reportable segment.

The
Company recognized a pretax net loss of $1.4 million and $5.3 million for the year ended December 31, 2024 and 2023, respectively, in
net income (loss) from discontinued operations in the consolidated statements of operations and comprehensive loss in relation to Complexity.
The pretax net loss of $1.4 million during the year ended December 31, 2024, includes revenue of $1.0 million, cost of revenue of $0.9
million, and operating expenses of $1.5 million. The pretax net loss of $5.3 million for the year ended December 31, 2023, includes revenue
of $10.7 million, cost of revenue of $7.4 million, and operating expenses of $8.7 million.

Complexity
had amortization and depreciation of $0.2 million and $1.4 million for the year ended December 31, 2024 and 2023, respectively. Complexity
did not have significant capital expenditures or significant noncash activity during the periods presented.

    F-44

20.
Revenue and Segmented Information

The
CODM uses gross profit, as reviewed at periodic business review meetings, as the key measure of the Company’s results as it reflects
the Company’s underlying performance for the period under evaluation to determine resource allocation. As of December