Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 145

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 145
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 Company entered into a security agreement, by and between the Company and Blue & Silver
Ventures, Ltd. to provide a security interest in the assets of the Company to Blue & Silver Ventures, Ltd. in order to secure the
obligations underlying the promissory note.

During
the third quarter of 2025, the Company paid $2.1 million, principal and accrued interest, to pay down the Blue & Silver promissory
note in full.

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16.
Commitments and contingencies

Allinsports - A September 2021, decision issued
by an arbitrator located in Alberta, Canada, directed the Company to issue 241,666 shares to Allinsports in connection with a dispute
whether certain closing conditions in the acquisition agreement for Allinsports had been met. The Company recognized a liability for
the arbitration ruling of $1.5 million, which represented the fair value of the common shares directed to be delivered as of April 11,
2023. The liability is recorded as arbitration reserve on the Company’s consolidated balance sheets. This liability will be adjusted
to fair value at the end of each reporting period.

SPAC
Complaint – As previously disclosed, in June 2024 a complaint was filed in Delaware Chancery Court by Nathan Carter (“Plaintiff”
), a purported stockholder of B. Riley Principal 150 Merger Corp. (“BRPM”),  against several former directors of BRPM,
Faze Holdings, Inc.’s predecessor, and several other BRPM affiliated entities, challenging the disclosures made in connection with
the July 2022 merger between BRPM and Faze Holdings, The Company is required to indemnify certain of the defendants due to its subsequent
acquisition of FaZe Holdings, Inc. As previously reported, the Company, the Plaintiff and the defendants entered into a settlement
agreement in February 2025 (the “Settlement Agreement”) pursuant to which the parties agreed to tentative terms resolving
the matter, subject to approval from the Court of Chancery. On September 22, 2025, the Court of Chancery granted final approval of the
Settlement Agreement, pursuant to which the Company and BRPM agreed to pay to Plaintiff a total of $3.25 million in cash, $2.15 million
of which the Company had the option to in the form of shares of its Common Stock in lieu of cash. As of the date of this Report, the
Company and BRPM