Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 550

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 550
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 not include a significant financing component.

24

Content

The Company and its talent roster generate and produce
original content which the Company monetizes through Google’s AdSense service. Revenue is variable and is earned when the visitor
views or “clicks through” on the advertisement. The amount of revenue earned is reported to the Company monthly and is recognized
upon receipt of the report of viewership activity. Payment terms and conditions vary, but payments are generally due within 30 to 45 days
after the end of each month.

The Company grants exclusive licenses to customers
for certain content produced by the Company’s talent. The Company grants the customer a license to the intellectual property, which
is the content and its use in generating advertising revenues, for a pre-determined period, for an amount paid by the customer, in most
instances, upon execution of the contract. The Company’s only performance obligation is to license the content for use in generating
advertising revenues, and the Company recognizes the full contract amount at the point at which the Company provides the customer access
to the content, which is at the execution of the contract. The Company has no further performance obligations under these types of contracts
and does not anticipate generating any additional revenue from these arrangements apart from the contract amount.

Consumer Products

The Company earns consumer products revenue from sales
of the Company’s consumer products on the Company’s website or at live or virtual events. Revenues are recognized at a point
in time, as control is transferred to the customer upon shipment. The Company offers customer returns and discounts through a third-party
distributor and accounts for this as a reduction to revenue. The Company does not offer loyalty programs or other sales incentive programs
that are material to revenue recognition. Payment is due at the time of sale. The Company has outsourced the design, manufacturing, fulfillment,
distribution, and sale of the Company’s consumer products to a third party in exchange for royalties based on the amount of revenue
generated. Management evaluated the terms of the agreement to determine whether the Company’s consumer products revenues should
be reported gross or net of royalties paid. Key indicators that management evaluated in determining whether the Company is the principal
in the sale (gross reporting) or an agent (net reporting) include, but are not limited to:

    ●
    the Company is the party that is primarily responsible for fulfilling the promise to provide the specified good or service,

    ●
    the Company has inventory risk before the good is transferred to the customer, and

    ●