Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 289

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 289
---
Allinsports
- A September 2021, decision issued by an arbitrator located in Alberta, Canada, directed the Company to issue 241,666 shares to Allinsports
in connection with a dispute whether certain closing conditions in the acquisition agreement for Allinsports had been met. The Company
recognized a liability for the arbitration ruling of $1.5 million, which represented the fair value of the common shares directed to
be delivered as of April 11, 2023. The liability is recorded as arbitration reserve on the Company’s consolidated balance sheets.
This liability will be adjusted to fair value at the end of each reporting period.

SPAC
Complaint – As previously disclosed, in June 2024 a complaint was filed in Delaware
Chancery Court by Nathan Carter (“Plaintiff” ), a purported stockholder of B. Riley Principal 150 Merger Corp. (“BRPM”), 
against several former directors of BRPM, Faze Holdings, Inc.’s predecessor, and several other BRPM affiliated entities, challenging
the disclosures made in connection with the July 2022 merger between BRPM and Faze Holdings, The Company is required to indemnify certain
of the defendants due to its subsequent acquisition of FaZe Holdings, Inc. As previously reported, the Company, the Plaintiff and
the defendants entered into a settlement agreement in February 2025 (the “Settlement Agreement”) pursuant to which the parties
agreed to tentative terms resolving the matter, subject to approval from the Court of Chancery. On September 22, 2025, the Court of Chancery
granted final approval of the Settlement Agreement, pursuant to which the Company and BRPM agreed to pay to Plaintiff a total of $3.25
million in cash, $2.15 million of which the Company had the option to in the form of shares of its Common Stock in lieu of cash. As of
the date of this Report, the Company and BRPM have made the required settlement payment amounts in cash in full. As a result the litigation
has been resolved.

Alta Partners v. FaZe Holdings, Inc. On April 23, 2025, Alta Partners, LLC (“Alta”) filed a complaint
against FaZe Holdings, Inc. and GameSquare Holdings, Inc., in the United States District Court for the Southern District of New York,
alleging that in 2022, FaZe Holdings breached a warrant agreement between FaZe Holdings and Alta. On August