Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 601

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 601
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% 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  
     4,053,399 
  
    Less: Accumulated depreciation 
     (647,608) 
     (1,588,766)
  
    Property and equipment, net  
    $303,950  
    $2,464,633 

The
Company recognized depreciation expense for property and equipment of $0.7 million for the years ended December 31, 2024 and 2023, respectively.

7.
Goodwill and intangible assets

(a)
Goodwill

The
following table presents the changes in the carrying amount of goodwill:

 Schedule of goodwill

    Balance, December 31, 2022 
    $- 
  
    Acquisition of Engine 
     25,600,501 
  
    Impairment of Frankly 
     (7,024,000)
  
    Disposal of Frankly radio assets 
     (2,272,512)
  
    Balance