Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 136

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 136
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1.5 million, which represented the
fair value of the common shares directed to be delivered as of April 11, 2023, the closing date of the Arrangement. The liability is recorded
as arbitration reserve on the Company’s consolidated balance sheets. This liability will be adjusted to fair value at the end of
each reporting period.

Promissory Note Recovery - By Order to Continue
dated May 5, 2022, Engine was substituted in as the plaintiff in a matter pending in the Ontario Superior Court of Justice, seeking recovery
of $2.1 million (€1.9 million) of principal and additional amounts of accrued interest under promissory notes acquired by Engine.
The matter is in the discovery stage.

SPAC Complaint - A complaint has been filed
in Delaware Chancery Court against several former directors of Faze Holdings, Inc.’s predecessor, B Riley 150 Merger Corp., and
several other B Riley affiliated entities, challenging the disclosures made in connection with the July 2022 merger between B. Riley 150
Merger Corp. and Faze Holdings, Inc. The Company has indemnification obligations to the former B. Riley 150 Merger Corp. directors. Under
the terms of a proposed settlement agreement, B. Riley and the Company will each contribute a total of $1,050,000 of cash and Company
common stock to resolve the matter. The terms of the proposed settlement of this matter are currently being reviewed by the Delaware Chancery
Court.

Villanueva v. Faze Clan, Inc. - On June 20,
2024, Plaintiff Harold Villanueva (“Plaintiff”) filed a Complaint in the California Superior Court for the County of Los 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.

The outcomes of pending litigations in which the Company
is involved are necessarily uncertain as are the Company’s expenses in prosecuting and defending these actions. From time to time
the Company may modify litigation strategy and/or the terms on which it retains counsel and other professionals