Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 219

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 219
---
 “Faze Media Voting Proxy”).

Faze
Media is not a variable interest entity. Due to the Faze Media Voting Proxy, the Company maintains a controlling financial interest in
Faze Media and Faze Media is a consolidated subsidiary of the Company as of December 31, 2024. The Preferred Stock of Faze Media held
by M4 and Gigamoon represent a non-controlling interest of the Company. Upon termination of the Faze Media Voting Proxy, the Company
will reassess whether it continues to have a controlling financial interest in Faze Media.

As
a result of the above transactions, the Company recorded a non-controlling interest in Faze Media, Inc. of $20.5 million, the sum of
cash consideration received, within the consolidated statements of stockholders’ equity.

5.
Investment

In
conjunction with completion of the Arrangement (see Note 4), the Company acquired an 18.62% interest in One Up Group, LLC (“One
Up”). One Up operates a mobile app which allows gamers to organize and play one-on-one matches with other gamers and compete for
money.

The
April 11, 2023, acquisition date fair value of investment was $3.2 million. The Company accounts for the investment in One Up in accordance
with the provisions of ASC 321 and, because the investment in One Up does not have a readily determinable fair value, elected to use
the measurement alternative therein. The investment will be re-measured upon future observable price changes in orderly transactions
or upon impairment, if any.

One
Up completed an equity offering on December 22, 2023, representing an observable price change. As a result of this observable price change,
in the year ended December 31, 2023, the Company recognized a $0.5 million change in fair value of the Company’s investment in
One Up.

No
other observable price changes or impairments occurred during the year ended December 31, 2024.

    F-29

6.
Property and equipment, net

Property
and equipment consist of the following:

 Schedule of property and equipment

    December 31, 2024  
    December 31, 2023 
  
    Leasehold improvements 
    $-  
    $3,655,619 
  
    Equipment 
     951,558  
     397,780 
  
    Property and equipment, gross 
     951,558