Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 85

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 85
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, Inc. 
     (33,224,344) 
     (36,611,606)

(b)
Disposition of certain Frankly Media LLC, assets

On
December 29, 2023, the Company sold a technology platform and customer accounts making up the radio assets of Frankly Media LLC (“Frankly”),
a subsidiary of the Company, to SoCast, Inc. (“SoCast”). SoCast paid the Company aggregate consideration of $3.3 million
for Frankly’s radio assets, including $2.8 million paid upon closing of the transaction and contingent consideration receivable,
with a transaction closing date fair value of $0.5 million, based on future revenue that SoCast will derive from the purchased radio
assets. The Company recognized a gain of $41 thousand after offsetting the consideration received with the carrying values of the disposed
assets and liabilities.

The
Company recognized a loss of $0.5 million on the fair value of the contingent consideration receivable during the year ended December
31, 2024, included in other operating expenses in the consolidated statements of operations and comprehensive loss.

(c)
FaZe Merger

On
March 7, 2024, the Company completed its acquisition of FaZe (the Merger). Prior to the Merger, the Company created GameSquare Merger
Sub I, Inc. (“Merger Sub”) to effect the Merger. As a result of the Merger, Merger Sub merged with FaZe, with FaZe continuing
as the surviving corporation and as a wholly-owned subsidiary of the Company.

The
Company acquired all issued and outstanding FaZe common shares in exchange for 0.13091 of a GameSquare common share for each FaZe common
share (the “Exchange Ratio”). All outstanding FaZe equity awards and warrants to purchase shares of FaZe common stock were
acquired and exchanged for GameSquare equity awards and warrants to purchase GameSquare common stock on substantially the same terms,
with exercise prices, where applicable, and shares issuable adjusted for the Exchange Ratio.

The
Company incurred transaction costs of $1.4 million associated with the Merger. All such costs were expensed as incurred. The net loss
attributed to FaZe’s operations from the acquisition date to September 30, 2024, was $4.7 million, with revenue of $25.3 million.

The
Merger was accounted for using the acquisition method of accounting under ASC 805, Business Combinations, which