Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 198

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 198
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tlement
Shares”). In the event that the collective value of the Settlement Shares drops below $150,000 on the six month anniversary date
following issuance of the Settlement Shares, or the next business day if the six-month anniversary date falls on a weekend or holiday
(the collective value to be computed based on the Nasdaq closing price of GameSquare’s common stock on that six-month anniversary
date, or the next business day if the six-month anniversary date falls on a weekend or holiday), then within three (3) business days
of that date, GameSquare shall pay the difference between the collective value and $150,000 to Alta in cash (the “True-Up Payment”).
Upon GameSquare’s delivery of the Settlement Shares and True Up Payment, if applicable, the public warrants that are owned and/or
beneficially held by Alta at that time shall be cancelled immediately and Alta shall have no ownership, right, claim, interest or benefit
in such public warrants. Moreover, within three (3) business days of Alta’s receipt of the Settlement Shares, Alta shall file the
Stipulation of Voluntary Dismissal with Prejudice, dismissing all claims asserted in the Action against GameSquare with prejudice.

The
outcomes of pending litigations in which the Company is involved are necessarily uncertain as are the Company’s expenses in prosecuting
and defending these actions. From time to time the Company may modify litigation strategy and/or the terms on which it retains counsel
and other professionals in connection with such actions, which may affect the outcomes of and/or the expenses incurred in connection
with such actions.

The
Company is subject to various other claims, lawsuits and other complaints arising in the ordinary course of business. The Company records
provisions for losses when claims become probable, and the amounts are estimable. Although the outcome of such matters cannot be determined,
it is the opinion of management that the final resolution of these matters will not have a material adverse effect on the Company’s
financial condition, operations, or liquidity.

15.
Revenue and segmented information

The
CODM uses gross profit, as reviewed at periodic business review meetings, as the key measure of the Company’s results as it reflects
the Company’s underlying performance for the period under evaluation to determine resource allocation. As of June 30, 2025, the
Company was organized into the three operating segments, which also represent its three reportable segments: Teams, Agency and Software-as-service
(SaaS) + Advertising.

    20

Revenue,