Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 155

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 155
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 execute its business
strategy or be successful in future financing activities. As of June 30, 2025, the Company had a working capital deficiency of $27.6 million
(as of December 31, 2024, a working capital deficiency of $18.3 million) which is comprised of current assets less current liabilities.

These conditions indicate the existence
of a material uncertainty that raises substantial doubt about the Company’s ability to continue as a going concern and, therefore,
the Company may be unable to realize its assets and discharge its liabilities in the normal course of business.

As
of June 30, 2025, cash and restricted cash totaled $6.5 million, compared to $13.1 million as of December 31, 2024.

34

While
management has been historically successful in raising the necessary capital, it cannot provide assurance that it will be able to execute
its business strategy or be successful in future financing activities.

As discussed in recent developments above,
in July 2025, we raised gross proceeds of $89.6 million over three offerings. We raised $9.2 million on July 9, 2025 through a registered
equity offering of our common shares, $75.3 million on July 18, 2025 through a registered equity offering of our common shares and $5.15
million on July 24, 2025 through a private placement of our Series A-1 convertible preferred shares.

Our
ability to maintain sufficient liquidity could be affected by various risks and uncertainties including, but not limited to, our ability
to raise additional funds through financing, those related to consumer demand and acceptance of our products and services, our ability
to collect payments as they become due, achieving our internal forecasts and objectives, the economic conditions of the United States
and abroad.

Sources
and Uses of Cash

Since
inception, we have financed our operations primarily by issuing equity and debt. As of June 30, 2025, our principal sources of liquidity
were our cash and accounts receivable in the amount of $4.7 million and $13.0 million, respectively, and available borrowings under our
line of credit as well as new debt and/or equity issuances.

Operating
Activities

Net cash used in operating activities was $6.9 million
during the six months ended June 30, 2025, compared with $17.6 million used in operating activities in the comparative prior year period.
The use of funds in