Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 123

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 123
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 from July 2026 to final maturity on June 30, 2027. The
UNIV Note is secured by assets of the UNIV pursuant to a Security Agreement executed in conjunction with the UNIV APA between the Company
and UNIV.

The
XPR Note has a principal amount 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 May 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 Net income (loss) from discontinued
operations on the consolidated statements of operations and comprehensive loss.

During
the third quarter of 2025, the Company executed a plan to discontinue the operations of Frankly, following a strategic decision to focus
the Company’s resources on its full-service creative agency, SaaS and newly launched digital asset treasury. Subsequent to the
Frankly asset disposal discussed above, the business of Frankly that remained was its legacy programmatic advertising operation. Given
its single digit-gross margins and operating losses, management deemed it in the best interest of the Company to discontinue operations
of Frankly. During the three and nine months ended September 30, 2025, Frankly met the requirements to be reported as discontinued operations
(see Note 19).

    12

(d)
Faze Media, Inc. asset contribution

On
May 2, 2024, the Company created FaZe Media, Inc. (“F