Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 116

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 116
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 cryptocurrency exchanges
or widely recognized pricing indices. These assets are presented separately on the condensed consolidated balance sheets. Upon sale or
transfer, crypto assets are derecognized at fair value. The Company applies an average cost methodology to assign costs for purposes of determining digital assets held and
realized gains and losses.

Digital
assets outside the scope of ASC 350-60, such as non-fungible tokens (“NFTs”), are accounted for as indefinite-lived intangible
assets under ASC 350-30.

(g)
Investments – equity securities

Investments
in and advances to entities or joint ventures in which the Company has significant influence, but less than a controlling financial interest,
are accounted for using the equity method. Significant influence is generally presumed to exist when the Company owns an interest between
20% and 50% and exercises significant influence.

In
accordance with ASC 321 “Investments—Equity Securities” (“ASC 321”), equity securities which the Company
has no significant influence (generally less than a 20% ownership interest) with readily determinable fair values are accounted for at
fair value based on quoted market prices. Equity securities without readily determinable fair values are accounted for either at fair
value or using the measurement alternative which is at cost minus impairment, if any, plus or minus changes resulting from observable
price changes in orderly transactions for the identical or a similar investment of the same issuer. All gains and losses on investments
in equity securities are recognized in the consolidated statements of operations and comprehensive loss.

Equity
securities accounted for under ASC 321 without a readily determinable fair value are accounted for using the net asset value (“NAV”)
practical expedient in accordance with ASC 820 where applicable and when elected by the Company. The NAV is calculated by the general
partner in a manner consistent with ASC 946, Financial Services — Investment Companies.

    8

Equity
securities accounted for under ASC 321 without a readily determinable fair value and for which the NAV practical expedient has not been
elected are accounted for under the measurement alternative. The Company assesses the securities for impairment indicators, at least
annually, or more frequently if there are any indicators of impairment. If the assessment indicates that the fair value of the investment
is less than its carrying value, the investment is impaired and an impairment charge equal to the excess of the carrying value over the
related fair value of the investment will be recorded.

3.
Recent accounting pron