Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 575

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 575
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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.

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 at live
or virtual events. Revenues are recognized at a point in time, as control is transferred to the customer upon shipment. The Company offers
customer returns and discounts through a third-party distributor and accounts for this as a reduction to revenue. The Company does not
offer loyalty programs or other sales incentive