Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 28

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 28
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 indirectly,
over $60 million ETH and NFT to support broader growth initiatives across the Company’s platform, however, GameSquare’s Board
has approved an ETH allocation of up to $250 million.

Commitments
and Contingencies

Management
commitments

The
Company is party to certain management contracts. These contracts require payments of approximately $0.6 million to be made upon the
occurrence of a change in control and termination without cause to certain officers of the Company. The Company is also committed to
payments upon termination without cause of approximately $1.1 million pursuant to the terms of these contracts. As a triggering event
has not taken place, these amounts have not been recorded in these consolidated financial statements.

Former
activities

The
Company was previously involved in oil and gas exploration activities in Canada, the United States and Colombia. The Company ceased all
direct oil and gas exploration activities in 2014. While management estimated that the exposure to additional liabilities from its former
oil and gas activities over and above the reclamation deposits held in trust for the Alberta Energy Regulator of $0.3 million to be remote,
the outcome of any such contingent matters is inherently uncertain.

Litigation
and arbitration

We
are subject to various claims, lawsuits and other complaints arising in the ordinary course of business. We record provisions for losses
when claims become probable, and the amounts are estimable. Although the outcome of such matters cannot be determined, it is the opinion
of management that the final resolution of these matters will not have a material adverse effect on our financial condition, operations,
or liquidity.

35

Critical
Accounting Policies

Revenue
recognition

Revenue
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