Company: GVSE
Filing Date: 2025-07-16
Form Type: S-1/A
Source: 0001641172-25-019925
Chunk: 103

Company: Gameverse Interactive Corp
Filing Date: 2025-07-16
Form: S-1/A
Chunk 103
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 require a higher degree of judgement than others in their application. Management evaluates all of its estimates and judgements based on available information and experience; however, actual results could differ from those estimates.

Advertising Costs

The Company expenses the cost of advertising and promotional materials when incurred. The advertising costs were $2,450 and $3,004 for the three months ended March 31, 2024, and 2025.

| F-18 |

Fair Value of Financial Instruments

Fair Value of Financial Instruments requires disclosure of the fair value information, whether or not to recognized in the balance sheet, where it is practicable to estimate that value. As of December 31, 2024 and March 31, 2025, the balances reported for cash and accrued expenses approximate the fair value because of their short maturities.

We have adopted ASC Topic 820 for financial instruments measured as fair value on a recurring basis. ASC Topic 820 defines fair value, established a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:

| ● | Level                                                                                                                                       
 1, defined as observable inputs such as quoted prices for identical instruments in active markets;                                          |
| ● | Level                                                                                                                                       
 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted            
 prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active;      
 and                                                                                                                                         |
| ● | Level                                                                                                                                       
 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions,   
 such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |

The Company’s equity investment in SRM is considered a Trading Security and is recorded at fair value each period end, with any gains or losses recorded within operating expenses on the Company’s statement of income. In determining the fair value of the equity investment in