Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 26

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 26
---
 on our working capital
position.

Our
approach to managing liquidity risk is to ensure that we will have sufficient liquidity to meet liabilities when due. Our liquidity and
operating results may be adversely affected if our access to the capital market is hindered, whether as a result of a downturn in stock
market conditions generally or as a result of conditions specific to the Company.

We
regularly evaluate our cash position to ensure preservation and security of capital as well as maintenance of liquidity. As we do not
presently generate sufficient revenue to cover costs, managing liquidity risk is dependent upon the ability to reduce monthly operating
cash outflow and secure additional financing. The recoverability of the carrying value of the assets and our continued existence is dependent
upon our ability to raise financing in the near term, and ultimately the achievement of profitable operations.

The Company has not yet realized profitable operations
and has incurred significant losses to date resulting in an accumulated deficit of $130.3 million as of June 30, 2025 ($122.2 million
as of December 31, 2024). The recoverability of the carrying value of the assets and the Company’s continued existence is dependent
upon the achievement of profitable operations, or the ability of the Company to raise alternative financing, if necessary. While management
has been historically successful in raising the necessary capital, it cannot provide assurance that it will be able to execute its business
strategy or be successful in future financing activities. As of June 30, 2025, the Company had a working capital deficiency of $27.6 million
(as of December 31, 2024, a working capital deficiency of $18.3 million) which is comprised of current assets less current liabilities.

These conditions indicate the existence
of a material uncertainty that raises substantial doubt about the Company’s ability to continue as a going concern and, therefore,
the Company may be unable to realize its assets and discharge its liabilities in the normal course of business.

As
of June 30, 2025, cash and restricted cash totaled $6.5 million, compared to $13.1 million as of December 31, 2024.

34

While
management has been historically successful in raising the necessary capital, it cannot provide assurance that it will be able to execute
its business strategy or be successful in future financing activities.

As discussed in recent developments above,
in July 2025, we raised gross proceeds of $89.6 million over three offerings. We raised $9.2 million