Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 194

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 194
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July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. The OBBBA includes a broad range of tax reform
provisions that may affect the Company’s financial results. The OBBBA has multiple effective dates, with certain provisions effective
in 2025 and others implemented through 2027. The Company is currently evaluating the impact of these provisions which could affect the
Company’s income tax expense and deferred tax assets; however, it is not expected to have a material impact to our unaudited Condensed
Consolidated Financial Statements.

44

Investments

Investments in and advances to entities or joint ventures
in which the Company has significant influence, but less than a controlling financial interest, are accounted for using the equity method.
Significant influence is generally presumed to exist when the Company owns an interest between 20% and 50% and exercises significant influence.

In accordance with ASC 321 “Investments—Equity
Securities” (“ASC 321”), equity securities which the Company has no significant influence (generally less than a 20%
ownership interest) with readily determinable fair values are accounted for at fair value based on quoted market prices. Equity securities
without readily determinable 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.

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