Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 558

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 558
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 performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits
provide a reasonable basis for our opinion.

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F-2

Critical
Audit Matters

The
critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated
or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial
statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters
does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit
matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Acquisitions 

Description of the Matter

As described in Note 4(c) to the consolidated financial
statements, during the year ended December 31, 2024, all issued and outstanding FaZe common shares in exchange for 0.13091 of a GameSquare
common share for each FaZe common share. The identifiable assets acquired, and the liabilities assumed are measured at fair value as of
the acquisition date. Where the net of the fair value of the identified assets acquired and liabilities assumed is less than the fair
value of consideration transferred, the difference is recognized as goodwill. In assessing fair value of the acquired assets, liabilities
and consideration, management used various valuation techniques involving significant judgment and subjectivity.

We considered this to be a critical audit matter due
to the complexity involved in the valuation of the acquired intangible assets and consideration. This resulted in a high degree of auditor
judgment, subjectivity and effort in performing procedures and evaluating the audit evidence related to management’s estimates.