Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 737

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 737
---
     -  
     -  
     (200,000) 
     -  
     (200,000)
  
    Issuance of convertible debt 
     -  
     6,045,000  
     -  
     10,000,000  
     16,045,000 
  
    Gain on extinguishment of debt 
     -  
     -  
     (329,703) 
     -  
     (329,703)
  
    Day one loss on issuance of debt 
     -  
     1,361,773  
     -  
     -  
     1,361,773 
  
    Conversion of debt 
     -  
     (645,161) 
     -  
     -  
     (645,161)
  
    Change in fair value(1) 
     34,473  
     (133,655) 
     (335,937) 
     (124,093) 
     (559,212)
  
    Balance, December 31, 2024 
    $1,629,448  
    $4,852,256  
    $-  
    $9,908,784  
    $16,390,488 

    Contractual principal balances outstanding: 

    As of December 31, 2023 
    $1,250,000  
    $-  
    $5,800,000  
    $-  
    $7,050,000 
  
    As of December 31, 2024 
    $1,250,000  
    $4,124,299  
    $-  
    $10,000,000  
    $15,374,299 

    (1)
    None
    of the changes in fair value during the period were due to instrument-specific changes in credit risk.

    F-36

12.
                                            Income tax 

The
Company computes taxes using the asset and liability method in accordance with FASB ASC Topic 740, Income Taxes. Under the asset
and liability method, the Company determines deferred income tax assets and liabilities based on the differences between the financial
reporting and tax bases of assets and liabilities and measure them using currently enacted tax rates and laws. A valuation