Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 45

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 within additional paid-in capital on the condensed consolidated balance sheet.

On
July 18, 2025, 5,016,666 warrants were issued to the underwriter, representing 10% of the common shares issued in the offering. The warrants
have a strike price of $1.80 per warrant and are exercisable for a period of five years. The total fair value of the underwriter warrants
issued was $5.6 million, and included within additional paid-in capital on the condensed consolidated balance sheet.

On
July 1, 2025, 600,000 warrants were issued to Dialectic for services. The warrants have an exercise price of $1.00 and are exercisable
for a period of three years. The total fair value of the warrants issued was $0.3 million, and included within General and administrative
expense on the condensed consolidated statement of operations.

As
discussed in Note 4, in conjunction with the acquisition of FaZe, the Company issued 775,415 warrants with an acquisition fair value
of $26 thousand, included in the FaZe acquisition purchase price consideration.

As
discussed in Note 11, in conjunction with the PIPE Financing on March 7, 2024, 1,079,136 warrants were issued with an exercise price
of $1.55 and a contractual term of 5 years. The relative fair value of the warrants of $1.1 million was estimated using the Black-Scholes
option pricing model with the following assumptions: share price of $1.56, expected dividend yield of 0%, expected volatility rate of
120.00%, based on the historical volatility of comparable companies, a risk free rate of 3.36% and an expected life of 5 years. The warrants
have an exercise price in USD and are equity-classified.

The
Company had 8,439,638 equity-classified warrants with a weighted average exercise price of $9.54 outstanding as of September 30, 2025
and 1,854,551 equity-classified warrants with a weighted average exercise price of $37.63 outstanding as of December 31, 2024.

15.
Related party transactions

(a)
Convertible debenture with a director of the Company as counterparty

On
September 1, 2022, Engine extended convertible debentures that were due to expire in October and November 2022 with an aggregate principal
amount of $1.3 million.