Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 52

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 4
Chunk 52
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 241,666 common shares
of Engine to those shareholders. As alternative relief, the shareholders of Allinsports sought up to $20.0 million in damages. A hearing
in this matter was held in May of 2021, and by a decision dated September 30, 2021, the Arbitrator determined that the closing of the
transaction had previously occurred and directed Engine to issue 241,666 common shares. In conjunction with completion of the Arrangement,
the Company assumed this obligation to issue 241,666 common shares. The Company has not yet issued the shares and is pursuing relief
against Allinsports shareholders for various alleged breaches of the share purchase agreement. The Company recognized a liability for
the arbitration ruling of $1.5 million, which represented the fair value of the common shares directed to be delivered as of April 11,
2023, the closing date of the Arrangement. The liability is recorded as arbitration reserve on the Company’s consolidated balance
sheets. This liability will be adjusted to fair value at the end of each reporting period.

Promissory
Note Recovery - By Order to Continue dated May 5, 2022, Engine was substituted in as the plaintiff in a matter pending in the Ontario
Superior Court of Justice, seeking recovery of $2.1 million (€1.9 million) of principal and additional amounts of accrued interest
under promissory notes acquired by Engine. The matter is in the discovery stage.

SPAC
Complaint - A complaint has been filed in Delaware Chancery Court against several former directors of Faze Holdings, Inc.’s
predecessor, B Riley 150 Merger Corp., and several other B Riley affiliated entities, challenging the disclosures made in connection
with the July 2022 merger between B. Riley 150 Merger Corp. and Faze Holdings, Inc. The Company has indemnification obligations to the
former B. Riley 150 Merger Corp. directors. Under the terms of a proposed settlement agreement, B. Riley and the Company will each contribute
a total of $1,050,000 of cash and Company common stock to resolve the matter. The terms of the proposed settlement of this matter are
currently being reviewed by the Delaware Chancery Court.

Villanueva
v. Faze Clan, Inc. - On June 20, 2024, Plaintiff Harold Villanueva (“Plaintiff”) filed a Complaint in the California
Superior Court for the County of Los