Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 146

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 146
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2025, pursuant to which, the parties agreed
to accelerate the exercise date under the Gigamoon CD to April 1, 2025. As a result, on April 1, 2025, GameSquare transferred the 5,725,000
shares of Series A-1 Preferred Stock of Faze Media Inc. to Gigamoon.

Outstanding
as of March 31, 2025

(a)
Three Curve CD

On
September 1, 2022, Engine extended convertible debentures that were due to mature in October and November 2022 with an aggregate principal
amount of $1.3 million. Key terms include (a) a maturity date of August 31, 2025, (b) an interest rate of 7% per annum (interest to be
paid in full at maturity) and (c) a conversion price of $4.40 per share.

The
fair value of the Three Curve CD was estimated using the binomial lattice model with the below assumptions:

Schedule of detailed information about fair value of convertible debentures 

    March
    31, 2025  
    December
    31, 2024 
  
    Share price 
    $0.595  
    $0.83 
  
    Conversion price 
    $4.40  
    $4.40 
  
    Term, in years 
     0.42  
     0.67 
  
    Interest rate 
     7% 
     7%
  
    Expected volatility 
     85.00% 
     95.00%
  
    Risk-free interest rate 
     4.26% 
     4.21%
  
    Expected dividend yield 
     0% 
     0%
  
    Debt instrument measurement input 
     0% 
     0%

(b)
Gigamoon CD

Key
terms include (a) a maturity date of November 13, 2029, (b) an interest rate of 7.5% per annum and (c) a conversion price of $2.50 per
share or 5,725,000 shares of Series A-1 Preferred Stock of Faze Media Inc.

    15

Given
the conversion of the Gigamoon CD on April 1, 2025 as discussed above, the fair value of the Gigamoon CD as of March 31, 2025 was determined