Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 16

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 Reporting, the Company’s Chief Operating Decision Maker (“CODM”) has been
identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance
for the entire Company. There were no significant changes to the Company’s segment reporting disclosures as a result of adopting
ASU No. 2023-07.

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 September 30, 2025,
the Company is organized into the four operating segments, which also represent its four reportable segments: Owned
and Operated IP, Agency, SaaS and managed services and Yield.

ASC
280 establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products
and services, major customers, and the countries in which the entity holds material assets and reports revenue.

(f)
Digital assets

Crypto
assets within the scope of ASC 350-60 are measured at fair value each reporting period, with changes in fair value recognized in the
condensed consolidated statements of operations. Fair value is determined using Level 1 inputs from principal market cryptocurrency exchanges
or widely recognized pricing indices. These assets are presented separately on the condensed consolidated balance sheets. Upon sale or
transfer, crypto assets are derecognized at fair value. The Company applies an average cost methodology to assign costs for purposes of determining digital assets held and
realized gains and losses.

Digital
assets outside the scope of ASC 350-60, such as non-fungible tokens (“NFTs”), are accounted for as indefinite-lived intangible
assets under ASC 350-30.

(g)
Investments – equity securities

Investments
in and advances to entities or joint ventures in which the Company has significant influence, but less than a controlling financial interest,
are accounted for using the equity method. Significant influence is generally presumed to exist when the Company owns an interest between
20% and 50% and exercises significant influence.

In
accordance with ASC 321 “Investments—Equity Securities” (“ASC 321”), equity securities which the Company
has no significant influence (generally less than a 20% ownership interest) with readily determinable fair values are accounted for at
fair value based on quoted market prices. Equity securities without readily determinable fair values are accounted for either at fair
value or using the measurement