Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 264

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 3
Chunk 264
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 no material adjustments to the Company’s
condensed consolidated financial statements for the three and nine months ended September 30, 2025. In addition, there were no
changes to previously released financial results. However, if the collective deficiencies were deemed to create a material weakness,
a material misstatement to our consolidated financial statements might not be prevented or detected on a timely basis.

Management’s
Remediation Measures

To
address the deficiencies identified, management, with oversight of the Audit Committee, has implemented, or will implement, remediation
measures to further address the deficiencies in the design of its DC&P and ICFR. The Company intends to complete such remedial measures
by December 31, 2026. Management has also performed an initial risk assessment using a top-down, risk-based approach with respect to
the risks of material misstatement of the consolidated financial statements. In addition, compensating controls have been applied to
a number of areas where the risks of material misstatement are considered moderate to high. The Company is engaging outside resources
to strengthen the business process documentation and help with management’s self-assessment and testing of internal controls. Although
the Company can give no assurance that these actions will remediate these deficiencies or that additional deficiencies or a material
weaknesses will not be identified in the future, management believes the foregoing efforts will, when implemented, strengthen our DC&P
and ICFR. Management will take additional remedial actions as necessary as they continue to evaluate and work to improve the Company’s
control environment.

Changes
in Internal Control Over Financial Reporting

There
were no changes in the Company’s internal control over financial reporting that occurred during the nine months ended
September 30, 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal
control over financial reporting.

47

PART
II - OTHER INFORMATION

ITEM
1. LEGAL PROCEEDINGS

Allinsports
- A September 2021, decision issued by an arbitrator located in Alberta, Canada, directed the Company to issue 241,666 shares to Allinsports
in connection with a dispute whether certain closing conditions in the acquisition agreement for Allinsports had been met. 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 liability is recorded as arbitration reserve on the Company’s consolidated balance sheets.
This liability