Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 173

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 173
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 adjustments could be material. It is not possible to predict whether the Company will be able
to raise adequate financing or ultimately attain profit levels of operations.

The
Company has not yet realized profitable operations and has incurred significant losses to date resulting in an accumulated deficit of
$130.3 million as of June 30, 2025 ($122.2 million as of December 31, 2024). The recoverability of the carrying value of the assets and
the Company’s continued existence is dependent upon the achievement of profitable operations, or the ability of the Company to
raise alternative financing, if necessary. While management has been historically successful in raising the necessary capital, it cannot
provide assurance that it will be able to execute its business strategy or be successful in future financing activities. As of June 30,
2025, the Company had a working capital deficiency of $27.6 million (as of December 31, 2024, a working capital deficiency of $18.3 million)
which is comprised of current assets less current liabilities.

These
conditions indicate the existence of a material uncertainty that raises substantial doubt about the Company’s ability to continue
as a going concern and, therefore, the Company may be unable to realize its assets and discharge its liabilities in the normal course
of business.

    6

2.
Significant accounting policies

(a)
Basis of presentation

The
accompanying unaudited condensed consolidated financial statements have been prepared following generally accepted accounting principles
in the United States of America (“GAAP”) for interim financial reporting and the rules and regulations of the SEC for interim
reporting. Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and footnotes
required by GAAP for audited financial statements. The balance sheet as of December 31, 2024 was derived from the Company’s audited
consolidated financial statements but does not include all disclosures required by GAAP for annual financial statements. In management’s
opinion, the interim information contains all adjustments, which include normal recurring adjustments necessary for a fair statement
of the results for the interim periods. The footnote disclosures related to the interim financial information contained herein are also
unaudited. Such financial information should be read in conjunction with the consolidated financial statements and related notes thereto
for the year ended December 31, 2024, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024,
which was filed with