Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 116

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 116
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 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 March 31, 2025, our principal sources of liquidity
were our cash and accounts receivable in the amount of $4.7 million and $18.3 million, respectively, and available borrowings under our
line of credit as well as new debt and/or equity issuances.

As
discussed in recent developments above, we obtained gross proceeds of $10.0 million from the Gigamoon CD issued in December 2024.

Operating
Activities

Net
cash used in operating activities was $8.6 million during the three months ended March 31, 2025, compared with $8.0 million used in operating
activities in the comparative 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 $0.4 million for the three months ended March 31, 2025.

Net
cash provided by investing activities was $2.7 million for the three months ended March 31, 2024.

Financing
Activities

Net
cash provided by financing activities was $1.5 million for the three months ended March 31, 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 $9.5 million for the three months ended March 31, 2024, which was primarily due to PIPE Financing on March 7, 2024 of $10 million.

Commitments
and Contingencies

Management
commitments

The
Company is party to certain management contracts. These contracts require payments of approximately $0.6 million to be made upon the
occurrence of a change in control and termination without cause to certain officers of the Company. The Company is also committed to
payments upon termination without cause of approximately $1.1 million pursuant to the terms of these contracts. As a triggering event
has not taken place, these amounts have not been