Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 154

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 154
---
 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 Angeles, seeking damages against FaZe Clan, Inc. and other parties. Plaintiff asserts causes of
action for (1) Negligence, (2) Negligent Hiring, Retention, and Supervision, and (3) Premises Liability in connection with injuries alleged
incurred on FaZe Clan’s premises. FaZe Clan has denied liability for the alleged injuries and this matter is in the discovery stage.
FaZe Clan’s insurer is providing defense of these claims pursuant to a reservation of rights letter.

Alta Partners v. FaZe Holdings, Inc. –
On April 23