Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 1318

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 1318
---
 in Note 2(e) to the consolidated financial
statements, the Company’s revenue includes brand sponsorships, content creation and monetization, league participation, talent representation,
influencer promotions, software-as-a-service and advertising. For all contracts, management identifies the performance obligations at
contract inception by evaluating whether the promised services are distinct. Performance obligations within the majority of the Company’s
contracts comprise a series of distinct services that are recognized over time and are treated as a single performance obligation or at
a point in time and are treated as a single performance obligation, as applicable. Contracts with the Company’s customers primarily
utilize a usage-based structure, where cost per thousand impressions (CPM) pricing is consistent over the contract term. Contracts with
the Company’s customers may also utilize other pricing arrangements, including minimum commitments, overages based on tiered pricing
or flat fees. During the year ended December 31, 2024, the Company recognized revenue of $96 million.

F-4

Revenue recognition (continued) 

Description of the Matter (continued)

The principal consideration for our determination
that performing procedures relating to revenue recognition is a critical audit matter is a high degree of auditor effort in performing
procedures related to the Company’s revenue recognition.

How the Critical Audit Matter Was Addressed in
the Audit

Addressing the matter involved performing procedures
and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures
included, but were not limited to:

■Obtaining an understanding of
internal controls over the Company’s process relating to revenue recognition. 

■Testing revenue recognized for
a sample of revenue transactions by obtaining and inspecting source documents, such as customer contracts, invoices, impressions data,
and cash receipts, and recalculating the revenue recognized based on the terms of the customer contract and impressions data. 

■Confirming a sample of outstanding
customer balances as of December 31, 2024 and, for confirmations not returned, obtaining and inspecting source documents, such as customer
contracts, invoices, impressions data, and subsequent cash receipts.

/s/
Kreston GTA LLP

We
have served as the Company’s auditor since 2020.

Markham,
Ontario, Canada

April
15, 2025

F-5

GameSquare
Holdings, Inc.

Consolidated
Balance Sheets

    December 31, 2024  
    December 31, 2023 
  
    Assets 

    Cash