Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 1193

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 1193
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 July 8, 2024 in connection with the issuance of the Yorkville CD, and
is included in loss on extinguishment of debt on the consolidated statements of operations and comprehensive loss. The loss is presented
net of the $0.3 million gain on extinguishment of the King Street CD (see Note 11(a)).

On
August 26, 2024, $100 thousand principal Yorkville CD, with a fair value of $108 thousand, was converted into 103,594 common shares.
On October 17, 2024, $500 thousand principal Yorkville CD, with a fair value of $538 thousand, was converted into 812,347 common shares.
Lastly, in November and December 2024, the Company made a series of cash payments, totaling $1.9 million to Yorkville, reducing its principal
balance by $1.8 million after application of the 7% cash payment premium. The outstanding principal balance on the Yorkville CD as of
December 31, 2024 was $4.1 million.

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

 Schedule of detailed information about fair value of convertible debentures

    December 31, 2024  
    July 8,
                                                                                2024 
  
    Share price 
    $0.83  
    $1.26 
  
    Conversion price 
     7%
discount to market   
     7%
discount to market  
  
    Term, in years 
     0.52  
     1.00 
  
    Interest rate 
     0.00% 
     0.00%
  
    Expected volatility 
     100.00% 
     105.00%
  
    Risk-free interest rate 
     4.24% 
     4.99%
  
    Expected dividend yield 
     0% 
     0%

(d)
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.

The
fair value of the Gigamoon was estimated using the binomial lattice model with the below assumptions:

 Schedule of detailed information about fair