Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 112

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 112
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 included in general and administrative expense on the consolidated statements of operations and comprehensive
loss.

12.
Warrants

(a)
Liability-classified warrants having CAD exercise price

The
functional currency of the Company is USD and certain of the Company’s warrants have an exercise price in CAD, resulting liability
classification of the warrants.

The
following is a summary of changes in the value of the warrant liability for the six months ended June 30, 2025:

Schedule of changes in value of warrant liability 

    Amount 
  
    Balance, December 31, 2024 
    $14,314 
  
    Change in fair value 
     12,384 
  
    Foreign exchange 
     466 
  
    Balance, June 30, 2025 
    $27,164 

The
following assumptions were used to determine the fair value of the warrant liability using the Black-Scholes option pricing model:

Schedule of assumptions fair value of warrant liability

    June 30, 2025  
    December 31, 2024 
  
    Share price 
     CAD$1.19   
     CAD$1.19  
  
    Term, in years 
     2.25  
     2.75 
  
    Exercise price 
     CAD$9.68  
     CAD$9.68 
  
    Expected volatility 
     100.00% 
     100.00%
  
    Risk-free interest rate 
     2.66% 
     2.85%
  
    Expected dividend yield 
     0% 
     0%

    18

Volatility
was estimated by using the average historical volatility of the Company. The expected life in years represents the period of time that
warrants issued are expected to be outstanding. The risk-free rate is based on government treasury bond rates issued with a remaining
term approximately equal to the expected life of the warrants.

The
Company had 123,930 liability-classified warrants with a weighted average exercise price of CAD$9.68 outstanding as of June 30, 2025
and December 31, 2024. There we no changes during the six months ended June 30, 2025.

(b)
Equity-classified warrants

As
discussed in Note 4 above in conjunction with the acquisition of FaZe, the Company issued 775,415 warrants with an acquisition fair value
of $26 thousand, included in the Fa