Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 1068

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 1068
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 that would
be necessary should the Company be unable to continue as a going concern, and therefore be required to realize its assets and liquidate
its liabilities and commitments in other than the normal course of business and at amounts different from those in the consolidated financial
statements. Such adjustments could be material. It is not possible to predict whether the Company will be able to raise adequate financing
or ultimately attain profit levels of operations.

The
Company has not yet realized profitable operations and has incurred significant losses to date resulting in an accumulated deficit of
$122.2 million as of December 31, 2024 ($73.4 million as of December 31, 2023). The recoverability of the carrying value of the assets
and the Company’s continued existence is dependent upon the achievement of profitable operations, or the ability of the Company
to raise alternative financing, if necessary. While management has been historically successful in raising the necessary capital, it
cannot provide assurance that it will be able to execute its business strategy or be successful in future financing activities. As of
December 31, 2024, the Company had a working capital deficiency of $18.3 million (as of December 31, 2023, a working capital deficiency
of $13.9 million) which is comprised of current assets less current liabilities.

    F-11

These
conditions indicate the existence of a material uncertainty that raise substantial doubt about the Company’s ability to continue
as a going concern and, therefore, the Company may be unable to realize its assets and discharge its liabilities in the normal course
of business.

2.
Significant accounting policies

(a)
Basis of presentation

The
consolidated financial statements of the Company have been prepared in accordance with GAAP and the rules and regulations of the Securities
and Exchange Commission (“SEC”) as of, and for the years ended, December 31, 2024 and 2023.

(b)
Principles of consolidation

The
consolidated financial statements include the accounts of the Company, all wholly owned and majority-owned subsidiaries in which the
Company has a controlling voting interest and, when applicable, variable interest entities in which the Company has a controlling financial
interest or is the primary beneficiary. Investments in affiliates where the Company does not exert a controlling financial interest are
not consolidated.

All
significant intercompany transactions and balances have been eliminated upon consolidation.

The
Company’s material subsidiaries as of December 31, 2024, are as follows:

Schedule of Material