Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 39

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 39
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31, 2023, which was primarily due to $4.5 million of proceeds from the line of credit and $0.2 million
of proceeds from promissory notes payable, offset by $0.8 million of payments on the credit facility.

23

Commitments
and Contingencies

Management
commitments

The
Company is party to certain management contracts. These contracts require payments of approximately $0.6 million to be made upon the
occurrence of a change in control and termination without cause to certain officers of the Company. The Company is also committed to
payments upon termination without cause of approximately $1.1 million pursuant to the terms of these contracts. As a triggering event
has not taken place, these amounts have not been recorded in these consolidated financial statements.

Former
activities

The
Company was previously involved in oil and gas exploration activities in Canada, the United States and Colombia. The Company ceased all
direct oil and gas exploration activities in 2014. While management estimated that the exposure to additional liabilities from its former
oil and gas activities over and above the reclamation deposits held in trust for the Alberta Energy Regulator of $0.3 million to be remote,
the outcome of any such contingent matters is inherently uncertain.

Litigation
and arbitration

We
are subject to various claims, lawsuits and other complaints arising in the ordinary course of business. We record provisions for losses
when claims become probable, and the amounts are estimable. Although the outcome of such matters cannot be determined, it is the opinion
of management that the final resolution of these matters will not have a material adverse effect on our financial condition, operations,
or liquidity.

Off-Balance
Sheet Arrangements

We
do not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on the
results of operations or financial condition of the Company including, without limitation, such considerations as liquidity and capital
resources.

Critical
Accounting Policies and Estimates

Our
discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which
have been prepared in accordance with GAAP. The preparation of our consolidated financial statements and related disclosures requires
us to make estimates, assumptions, and judgments as of the balance sheet date that affect the reported amounts of assets, liabilities,
revenues, costs and expenses and related disclosures. Our actual results may differ from these estimates under different assumptions
and conditions.

Revenue
recognition

Revenue