Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 27

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 27
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 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 June 30, 2025, our principal sources of liquidity
were our cash and accounts receivable in the amount of $4.7 million and $13.0 million, respectively, and available borrowings under our
line of credit as well as new debt and/or equity issuances.

Operating
Activities

Net cash used in operating activities was $6.9 million
during the six months ended June 30, 2025, compared with $17.6 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 $0.1 million
for the six months ended June 30, 2025.

Net cash provided by investing activities was $2.8
million for the six months ended June 30, 2024.

Financing
Activities

Net cash provided by financing activities was $2.0
million for the six months ended June 30, 2025, which was primarily due $2 million promissory note issued on March 25, 2025, as discussed
in the recent developments section. Net cash provided by financing activities was $26.3 million for the six months ended June 30, 2024,
which was primarily due to the PIPE Financing on March 7, 2024 of $10 million and the spinoff of FaZe Media on May 15, 2024 and minority
interest investments into FaZe Media of $15.75 million during the second quarter of 2024.

Crypto Treasury and Digital Assets

GameSquare has purchased, directly and