Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 191

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 191
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 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 programs that are material to revenue recognition. Payment is due at the time of sale.
The Company has outsourced the design, manufacturing, fulfillment, distribution, and sale of the Company’s consumer products to
a third party in exchange for royalties based on the amount of revenue generated. Management evaluated the terms of the agreement to
determine whether the Company’s consumer products revenues should be reported gross or net of royalties paid. Key indicators that
management evaluated in determining whether the Company is the principal in the sale (gross reporting) or an agent (net reporting) include,
but are not limited to:

    ●
    the Company is the party
    that is primarily responsible for fulfilling the promise to provide the specified good or service,

    ●
    the Company has inventory
    risk before the good is transferred to the customer, and

    ●
    the Company is the party
    that has discretion in establishing pricing for the specified good or service.

Based
on management’s evaluation of the above indicators, the Company reports consumer products revenues on a gross basis.

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Esports