Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 155

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 155
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, 2025, Alta Partners, LLC filed a Complaint against FaZe Holdings, Inc. and GameSquare Holdings, Inc., in the United States
District Court for the Southern District of New York, alleging that in 2022, FaZe Holdings breached a warrant agreement between FaZe Holdings
and Alta. The Company is currently investigating this matter.

The
outcomes of pending litigations in which the Company is involved are necessarily uncertain as are the Company’s expenses in prosecuting
and defending these actions. From time to time the Company may modify litigation strategy and/or the terms on which it retains counsel
and other professionals in connection with such actions, which may affect the outcomes of and/or the expenses incurred in connection
with such actions.

The
Company is subject to various other claims, lawsuits and other complaints arising in the ordinary course of business. The Company records
provisions for losses when claims become probable, and the amounts are estimable. Although the outcome of such matters cannot be determined,
it is the opinion of management that the final resolution of these matters will not have a material adverse effect on the Company’s
financial condition, operations, or liquidity.

15.
Revenue and segmented information

The
CODM uses gross profit, as reviewed at periodic business review meetings, as the key measure of the Company’s results as it reflects
the Company’s underlying performance for the period under evaluation to determine resource allocation. As of March 31, 2025, the
Company was organized into the three operating segments, which also represent its three reportable segments: Teams, Agency and Software-as-service
(SaaS) + Advertising.

    20

Revenue,
cost of sales and gross profit for the Company’s operating and reportable segments, disaggregated into geographic locations, are
as follows:

Schedule
of disaggregated into geographic regions 

    Three
    months ended March 31, 2025 
  
    Segment 
    United
    Kingdom  
    USA  
    Spain  
    Total 
  
    Revenue 

    Teams 
    $-  
    $9,466,934  
    $-  
    $9,466,934 
  
    Agency 
     229,706  
     2,070,329  
     -  
     2,300,035 
  
    SaaS + Advertising 
     -  
     7,718,318  
     1,624,372  
     9,342