Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 71

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 71
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(k)
Investments

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 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.

    F-16

(l)
Business combinations

The
results of businesses acquired in a business combination are included in the Company’s consolidated financial statements from the
date of the acquisition. The Company uses the acquisition method of accounting and allocates the purchase price to the identifiable assets
and liabilities of the relevant acquired business at their acquisition date fair values. Any excess consideration over the fair value
of assets acquired and liabilities assumed is recognized as goodwill. The allocation of the purchase price in a business combination
requires the Company to perform valuations with significant judgment and estimates, including the selection of valuation methodologies,
estimates of future revenue, costs and cash flows, discount rates and selection of comparable companies. The Company engages the assistance
of valuation specialists in concluding on fair value measurements in connection with determining fair values of assets acquired and liabilities
assumed in a business combination. As a result, during the measurement period, which may be up to one year from the acquisition date,
the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion
of the measurement