Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 18

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 for fiscal
years beginning after December 15, 2024, with early adoption permitted. The ASU is to be applied prospectively. Retroactive application
is permitted. The adoption of this ASU on January 1, 2025 did not have a significant impact on the Company’s consolidated financial
statements.

In
November 2023, the FASB issued ASU No 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU
2023-07”). ASU 2023-07 is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures
about significant segment expenses. The provisions of ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and
interim periods within fiscal years beginning after December 15, 2024. The adoption of this ASU on December 31, 2024 did not have a significant
impact on the Company’s consolidated financial statements.

4.
Acquisitions and divestitures

(a)
Acquisition of Click

On
September 10, 2025, GameSquare entered into an equity purchase agreement pursuant to acquire all of the outstanding equity interests
in Click Management Pty Ltd (“Click”), an Australian proprietary limited company, subject to the terms and conditions in
the Purchase Agreement. The acquisition of Click closed on September 11, 2025.

Under
the terms of the purchase agreement, the Company paid a base purchase price of $4,500,000
subject to customary adjustments for cash, net working capital, indebtedness and transaction expenses (collectively, “Cash at
closing”). The sellers will also receive, subject to the terms and conditions described in the Purchase Agreement: (i)
a deferred cash payment (“Deferred purchase consideration”) of $4,000,000
within sixty (60) days following December 31, 2025; and (ii) up to an aggregate of $3,000,000
in cash earn-out payments (“Contingent purchase consideration”) based on the post-closing performance of the Company and
its wholly owned subsidiary, Click Media & Management LLC, a Delaware limited liability company (“Click Media”).
Specifically, (a) up to $1,500,000 may be payable based on Click’s EBITDA for the 12-month period beginning January 1, 2026,
and (b) up to an additional $1,500,000 may be payable