Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 96

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 96
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 fair values are accounted for either at fair value or using the measurement alternative which is at cost
minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a
similar investment of the same issuer. All gains and losses on investments in equity securities are recognized in the consolidated statements
of operations and comprehensive loss.

Equity securities accounted for under ASC 321 without a readily determinable fair value are accounted for using the
net asset value (“NAV”) practical expedient in accordance with ASC 820 where applicable and when elected by the Company. The
NAV is calculated by the general partner in a manner consistent with ASC 946, Financial Services — Investment Companies.

Equity securities accounted for under ASC 321 without
a readily determinable fair value and for which the NAV practical expedient has not been elected are accounted for under the measurement
alternative. The Company assesses the securities for impairment indicators, at least annually, or more frequently if there are any indicators
of impairment. If the assessment indicates that the fair value of the investment is less than its carrying value, the investment is impaired
and an impairment charge equal to the excess of the carrying value over the related fair value of the investment will be recorded.

Digital assets

Crypto assets within the scope of ASC 350-60 are measured
at fair value each reporting period, with changes in fair value recognized in the condensed consolidated statements of operations. Fair
value is determined using Level 1 inputs from principal market cryptocurrency exchanges or widely recognized pricing indices. These assets
are presented separately on the condensed consolidated balance sheets. Upon sale or transfer, crypto assets are derecognized at fair value.

Digital assets outside the scope of ASC 350-60, such as non-fungible tokens (“NFTs”), are accounted for
as indefinite-lived intangible assets under ASC 350-30.

Business
combinations

The
results of businesses acquired in a business combination are included in the Company’s consolidated financial statements from the
date of the acquisition. The Company uses the acquisition method of accounting and allocates the purchase price to the identifiable assets
and liabilities of the relevant acquired business at their acquisition date fair values. Any excess consideration over the fair value
of assets acquired and liabilities assumed is recognized as goodwill. The allocation of the purchase price in a business combination
requires the Company to perform valuations with significant judgment and estimates, including the selection of valuation methodologies,
estimates of future revenue, costs and cash flows, discount rates and selection