Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 446

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 446
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 2023). The recoverability of the carrying value of the assets
and the Company’s continued existence is dependent upon the achievement of profitable operations, or the ability of the Company
to raise alternative financing, if necessary. 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 of
December 31, 2024, the Company had a working capital deficiency of $18.3 million (as of December 31, 2023, a working capital deficiency
of $13.9 million) which is comprised of current assets less current liabilities.

    F-11

These
conditions indicate the existence of a material uncertainty that raise 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.

2.
Significant accounting policies

(a)
Basis of presentation

The
consolidated financial statements of the Company have been prepared in accordance with GAAP and the rules and regulations of the Securities
and Exchange Commission (“SEC”) as of, and for the years ended, December 31, 2024 and 2023.

(b)
Principles of consolidation

The
consolidated financial statements include the accounts of the Company, all wholly owned and majority-owned subsidiaries in which the
Company has a controlling voting interest and, when applicable, variable interest entities in which the Company has a controlling financial
interest or is the primary beneficiary. Investments in affiliates where the Company does not exert a controlling financial interest are
not consolidated.

All
significant intercompany transactions and balances have been eliminated upon consolidation.

The
Company’s material subsidiaries as of December 31, 2024, are as follows:

Schedule of Material Subsidiaries

    Name of Subsidiary 
    Country of Incorporation 
    Ownership Percentage  
    Functional Currency
  
    Frankly Media LLC 
    USA 
     100.00% 
    US Dollar
  
    Stream Hatchet S.L. 
    Spain 
     100.00% 
    Euro
  
    Code Red Esports Ltd. 
    United Kingdom 
     100.00% 
    UK Pound
  
    GameSquare Esports (USA) Inc. (dba as Fourth Frame Studios) 
    USA 
     100.00% 
    US Dollar
  
    GCN Inc. 
    USA