Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 241

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 241
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As
of September 30, 2025, cash and restricted cash totaled $7.5 million, compared to $13.1 million as of December 31, 2024.

40

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
discussed in recent developments above, in July 2025, we raised gross proceeds of $89.6 million over three offerings. We raised $9.2
million on July 9, 2025 through a registered equity offering of our common shares, $75.3 million on July 18, 2025 through a registered
equity offering of our common shares and $5.15 million on July 24, 2025 through a private placement of our Series A-1 convertible preferred
shares.

Our
ability to maintain sufficient liquidity could be affected by various risks and uncertainties including, but not limited to, our ability
to raise additional funds through financing, those related to consumer demand and acceptance of our products and services, our ability
to collect payments as they become due, achieving our internal forecasts and objectives, the economic conditions of the United States
and abroad.

Sources
and Uses of Cash

Since
inception, we have financed our operations primarily by issuing equity and debt. As of September 30, 2025, our principal sources of
liquidity were our cash, accounts receivable and digital assets in the amount of $6.0 million, $13.3 and $4.0 million, respectively. Although the Company has approximately $65 million of ETH value held within our investment in ETH fund, which can
redeemed and subsequently sold at our election (subject to the ETH fund’s redemption provisions), we currently intend to be long term holders of ETH.

Operating
Activities

Net
cash used in operating activities was $17.3 million during the nine months ended September 30, 2025, compared with $25.4 million
used in operating activities in the comparative prior year period. The use of funds in operating activities is described in the
Results of Operations section above.

Investing
Activities

Net
cash used in investing activities was $61.8 million for the nine months ended September 30, 2025 primarily due to $57.1 million of digital asset purchases and $4.6 being used in the acquisition of Click.

Net
cash provided by