Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 461

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 461
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that has (or will have) a major effect on the entity’s operations and financial results. If these determinations can be made affirmatively,
the results of operations of the group of assets being disposed of (as well as any gain or loss on the disposal transaction) are aggregated
for separate presentation apart from continuing operating results of the Company in the consolidated financial statements.

See
Note 19 for discussion of the Company discontinued operations and assets held for sale as of, and for the years ended, December 31, 2024
and 2023.

(bb)
Restructuring charges, net

Restructuring
charges primarily consist of associate severance, one-time termination benefits and ongoing benefits related to the reduction of our
workforce and other costs associated with exit activities, which may include costs related to leased facilities to be abandoned and facility
and associate relocation costs. The determination of when we accrue for involuntary termination benefits under restructuring plans depends
on whether the termination benefits are provided under an ongoing benefit arrangement or under a one-time benefit arrangement. Ongoing
benefit arrangements are recognized over the service period or when termination becomes reasonably probable, and one-time benefit arrangements
are recognized in the period the arrangement is approved and formally communicated to associates. If applicable, we record such costs
into operating expense over the terminated associate’s future service period beyond any minimum retention period. Restructuring
charges that have been incurred but not yet paid are recorded in accrued expenses and other current liabilities in the consolidated balance
sheets.

For
the years ended December 31, 2024 and 2023, restructuring charges, net totaled $1.3 million and $0.5 million, respectively. The 2024
charges primarily related to employee and vendor exit costs as a result of the restructuring of Faze post-closing of the acquisition
of Faze on March 7, 2024. The 2023 charges primarily related to employee severance costs as a result of the restructuring of GameSquare
and Engine post-closing of the Arrangement.

    F-21

(cc)
Segment reporting

In
accordance with the ASC 280, Segment Reporting, the Company’s Chief Operating Decision Maker (“CODM”) has been
identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance
for the entire Company.

The
CODM uses gross profit, as reviewed at periodic business review meetings, as the key measure of the Company’s results as it reflects
the