Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 40

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 40
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 is measured based on the consideration specified
in a contract with a customer. The Company recognizes revenue when it transfers control of its services to a customer.

The following provides information about the nature
and timing of the satisfaction of performance obligations in contracts with customers, including significant payment terms and related
revenue recognition policies:

Brand Sponsorships

The Company offers advertisers a full range of promotional
vehicles, including but not limited to online advertising, livestream announcements, event content generation, social media posts, logo
placement on the Company’s official merchandise, and special appearances of members of the Company’s talent roster. The Company’s
brand sponsorship agreements may include multiple services that are capable of being individually distinct; however the intended benefit
is an association with the Company’s brand, and the services are not distinct within the context of the contracts. Revenues from
brand sponsorship agreements are recognized ratably over the contract term. Payment terms and conditions vary, but payments are generally
due periodically throughout the term of the contract. In instances where the timing of revenue recognition differs from the timing of
billing, management has determined the brand sponsorship agreements generally do not include a significant financing component.

24

Content

The Company and its talent roster generate and produce
original content which the Company monetizes through Google’s AdSense service. Revenue is variable and is earned when the visitor
views or “clicks through” on the advertisement. The amount of revenue earned is reported to the Company monthly and is recognized
upon receipt of the report of viewership activity. Payment terms and conditions vary, but payments are generally due within 30 to 45 days
after the end of each month.

The Company grants exclusive licenses to customers
for certain content produced by the Company’s talent. The Company grants the customer a license to the intellectual property, which
is the content and its use in generating advertising revenues, for a pre-determined period, for an amount paid by the customer, in most
instances, upon execution of the contract. The Company’s only performance obligation is to license the content for use in generating
advertising revenues, and the Company recognizes the full contract amount at the point at which the Company provides the customer access
to the content, which is at the execution of the contract. The Company has no further performance obligations under these types of contracts
and does not anticipate generating any additional revenue from these arrangements apart from the contract amount.

Consumer Products

The Company earns consumer products revenue from sales
of the Company’s consumer products on the Company’s website or