Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 53

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 4
Chunk 53
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 Angeles, seeking damages against FaZe Clan, Inc. and other parties. Plaintiff asserts causes of
action for (1) Negligence, (2) Negligent Hiring, Retention, and Supervision, and (3) Premises Liability in connection with injuries alleged
incurred on FaZe Clan’s premises. FaZe Clan has denied liability for the alleged injuries and this matter is in the discovery stage.
FaZe Clan’s insurer is providing defense of these claims pursuant to a reservation of rights letter.

Alta
Partners v. FaZe Holdings, Inc. – On April 23, 2025, Alta Partners, LLC filed a Complaint against FaZe Holdings, Inc. and
GameSquare Holdings, Inc., in the United States District Court for the Southern District of New York, alleging that in 2022, FaZe
Holdings breached a warrant agreement between FaZe Holdings and Alta. On August 11, 2025, the Company entered into a
Settlement and Release Agreement with Alta Partners, LLC, pursuant to which the Company agrees to issue to Alta $150,000 of the
Company’s restricted common stock (“Settlement Shares”). In the event that the collective value of the Settlement
Shares drops below $150,000 on the six month anniversary date following issuance of the Settlement Shares, or the next business day
if the six-month anniversary date falls on a weekend or holiday (the collective value to be computed based on the Nasdaq closing
price of GameSquare’s common stock on that six-month anniversary date, or the next business day if the six-month anniversary
date falls on a weekend or holiday), then within three (3) business days of that date, GameSquare shall pay the difference between
the collective value and $150,000 to Alta in cash (the “True-Up Payment”). Upon GameSquare’s delivery of the
Settlement Shares and True Up Payment, if applicable, the public warrants that are owned and/or beneficially held by Alta at that
time shall be cancelled immediately and Alta shall have no ownership, right, claim, interest or benefit in such public warrants.
Moreover, within three (3) business days of Alta’s receipt of the Settlement Shares, Alta shall file the Stipulation of
Voluntary Dismissal with Prejudice, dismissing all claims asserted in the Action against GameSquare with prejudice.

The
outcomes of pending litigations in which the Company is involved are necessarily uncertain as are the Company’s expenses in prosecuting
and defending