Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 101

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 101
---
,859,762 

    As
    of December 31, 2024 
  
    Description 
    Level
    1  
    Level
    2  
    Level
    3  
    Total 
  
    Liabilities: 

    Warrant liability 
     -  
     -  
     14,314  
     14,314 
  
    Arbitration reserve 
     199,374  
     -  
     -  
     199,374 
  
    Convertible debt 
     -  
     -  
     16,390,488  
     16,390,488 

(a)
Fair values measured on a non-recurring basis

The
Company’s non-financial assets, such as property and equipment, goodwill and intangible assets, are recorded at fair value upon
a business combination and are remeasured at fair value only if an impairment charge is recognized. The Company’s investment, accounted
for under the measurement alternative of ASC 321, is remeasured at fair value only upon an observable price change or if an impairment
charge is recognized. The Company uses unobservable inputs to the valuation methodologies that are significant to the fair value measurements,
and the valuations require management’s judgment due to the absence of quoted market prices. The Company determines the fair value
of its held and used assets, goodwill and intangible assets using an income, cost or market approach as determined reasonable.

17.
Discontinued operations

As
discussed in Note 4, on March 1, 2024, the Company sold Complexity and recognized a gain on disposition of $3.0 million, resulting in
Complexity meeting the requirements for presentation as discontinued operations. Prior to disposition, Complexity was part of the Teams
operating and reportable segment.

The
Company recognized a pretax net loss of $1.4 million for the three months ended March 31, 2024, in net income (loss) from discontinued
operations in the consolidated statements of operations and comprehensive loss in relation to Complexity. The pretax net loss of $1.4
million during the three months ended March 31, 2024, includes revenue of $1.0 million, cost of revenue of $0.9 million, and operating
expenses of $1.5 million.

Complexity
had amortization and depreciation of $0.2 million for the three months ended