Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 89

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 89
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    $(6,340,682) 
    $(8,837,627)

Liquidity
and Capital Resources

Overview

The
financial statements have been prepared on a going-concern basis, which assumes the realization of assets and liquidation of liabilities
in the normal course of business. Continuing operations, as intended, are dependent on management’s ability to raise required funding
through future equity issuances, its ability to acquire business interests and develop profitable operations or a combination thereof,
which is not assured, given today’s volatile and uncertain financial markets. We may revise programs depending 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 $131.2 million as of September 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 September 30, 2025, the Company had a working capital deficiency of $14.1 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