Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 180

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 180
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 of $0.7 million, inclusive of the $10.5 thousand paid in cash upon closing. The principal amount of the
XPR Note will be repaid in monthly installments, beginning August 2024. Monthly principal payments will be $12.5 thousand from August
2024 to June 2025, $20 thousand from July 2025 to June 2026, and $26 thousand from July 2026 to final maturity on June 30, 2027. The
XPR Note is secured by all rights of XPR to customer agreements and publisher agreements pursuant to a Security Agreement executed in
conjunction with the XPR APA between the Company and XPR.

The promissory notes receivable are classified as not held-for-sale and
measured at amortized cost, net of any allowance for credit losses, in accordance with ASC 310, Receivables. The promissory note
receivable was initially recorded at its transaction closing date fair value on Mat 31, 2024. During the second quarter of 2025, the Company
recorded a full reserve on the UNIV Note of $1.5 million as the buyer ceased making payments under the note. The reserve for credit losses
was recorded within Other income (expense), net on the consolidated statements of operations and comprehensive loss.

    10

(d)
Faze Media, Inc. asset contribution

On
May 2, 2024, the Company created FaZe Media, Inc. (“Faze Media”). On May 15, 2024, the Company entered into a business venture
with Gigamoon Media, LLC (“Gigamoon”). As part of this venture, the Company contributed certain media assets of Faze Clan,
Inc. to Faze Media and Gigamoon invested $11.0 million in Faze Media in exchange for 11,000,000 shares of Series A-2 Preferred Stock
of Faze Media, 49% of Faze Media’s voting equity interests, pursuant to a Securities Purchase Agreement (the “SPA”).
The Company was issued 11.45 million shares of Series A-1 Preferred Stock of Faze Media, 51% of Faze Media’s voting equity interests.

On
June 17, 2024, the Company entered into an agreement to sell 5,725,000 of its 11,450,000 shares of Series A-1 Preferred Stock of Faze
Media to M40A3 LLC