Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 1348

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 1348
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 a data-driven, gaming, media and influencer marketing platform company.
The Arrangement has expanded GSQ’s content, advertiser, and influencer businesses.

GSQ
incurred transaction costs of $2.7 million associated with the Arrangement. All such costs were expensed as incurred. The loss attributed
to Engine’s operations from the acquisition date to December 31, 2023, was $3.8 million, with revenue of $29.8 million.

The
Arrangement was accounted for using the acquisition method of accounting under ASC 805, Business Combinations, which requires
that the Company recognize the identifiable assets acquired and the liabilities assumed at their fair values on the date of acquisition.
The estimated fair values are preliminary and based on the information that was available as of that date.

    F-23

The
following table summarizes the consideration for the acquisition:

 Schedule of purchase consideration

    Purchase consideration 
    Number of shares  
    Amount 
  
    Common shares (1) 
     6,380,083  
    $39,684,000 
  
    Warrants - Equity and Liability (2) 
     1,147,492  
     183,275 
  
    Options - Vested (2) 
     237,996  
     1,210,000 
  
    RSUs - Vested (3) 
     23,339  
     120,000 
  
    Total purchase price 
     7,788,910  
    $41,197,275 

    (1)
    Acquisition
    date fair value of common stock determined based on $6.22 price per share.
  
    (2)
    Acquisition
    date fair value of warrants and options determined using the Black-Scholes option pricing model.

    Key
    inputs to the option pricing model are as follows:

    Expected
    term 1 – 9 years

    Volatility
    100%

    Risk-free
    rate 3.4% - 4.7%

    Dividend
    yield 0%

    (3)
    Acquisition
    date fair value of RSUs determined based on $6.22 price per share with discounts for lack of marketability ranging from 15% - 20%
    applied.

The
purchase price allocation is as follows:

Schedule of  purchase price allocation  

    Purchase price allocation 
    Amount 
  
    Cash 
    $1,806,