Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 192

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 192
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League
Participation: Generally, The Company has one performance obligation—to participate in the overall Esport event—because
the underlying activities do not have standalone value absent the Company’s participation in the tournament or event. Revenue from
prize winnings and profit-share agreements is variable and is highly uncertain. The Company recognizes revenue at the point in time when
the uncertainty is resolved.

Player
Transfer Fees: Player transfer agreements include a fixed fee and may include a variable fee component. The Company recognizes the
fixed portion of revenue from transfer fees upon satisfaction of the Company’s performance obligation, which coincides with the
execution of the related agreement. The variable portion of revenue is considered highly uncertain and is recognized at the point in
time when the uncertainty is resolved.

Licensing
of Intellectual Property: The Company’s licenses of intellectual property generate royalties that are recognized in accordance
with the royalty recognition constraint. That is, royalty revenue is recognized at the time when the sale occurs.

Talent
representation service revenues

Talent
representation service revenue is recorded on completion of the event in which the talent management service has been provided.

Influencer
promotional fees

Influencer
marketing and promotional fees are recognized over the period during which the services are performed. Revenue and income from custom
service contracts are determined on the percentage of completion method, based on the ratio of contract timepassed in the reporting period
over estimated total length of the contract.

Consulting
fees and other revenues

Consulting
fees and other revenues are recognized when the services have been performed.

Software-as-a-service

The
Company enters into license agreements with customers for its content management system, video software, and mobile applications (Frankly),
e-sports data platform (Stream Hatchet) and an influencer marketing platform (SideQik). These license agreements, generally non-cancellable,
without paying a termination penalty, and multiyear, provide the customer with the right to use the Company’s application solely
on a Company-hosted platform or, in certain instances, on purchased encoders. The license agreements also entitle the customer to technical
support.

Revenue
from these license agreements is recognized ratably over the license term. Early termination fees are recognized when a customer ceases
use of agreed upon services prior to the expiration of their contract. These fees are recognized in full on the date the customer has
completed their migration of the Company’s solutions and there is no continuing service obligation to the customer.

The
Company charges its customers for the