Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 464

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 464
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 which requires
that the Company recognize the identifiable assets acquired and the liabilities assumed at their fair values on the date of acquisition.
The estimated fair values are preliminary and based on the information that was available as of that date.

    F-23

The
following table summarizes the consideration for the acquisition:

 Schedule of purchase consideration

    Purchase consideration 
    Number of shares  
    Amount 
  
    Common shares (1) 
     6,380,083  
    $39,684,000 
  
    Warrants - Equity and Liability (2) 
     1,147,492  
     183,275 
  
    Options - Vested (2) 
     237,996  
     1,210,000 
  
    RSUs - Vested (3) 
     23,339  
     120,000 
  
    Total purchase price 
     7,788,910  
    $41,197,275 

    (1)
    Acquisition
    date fair value of common stock determined based on $6.22 price per share.
  
    (2)
    Acquisition
    date fair value of warrants and options determined using the Black-Scholes option pricing model.

    Key
    inputs to the option pricing model are as follows:

    Expected
    term 1 – 9 years

    Volatility
    100%

    Risk-free
    rate 3.4% - 4.7%

    Dividend
    yield 0%

    (3)
    Acquisition
    date fair value of RSUs determined based on $6.22 price per share with discounts for lack of marketability ranging from 15% - 20%
    applied.

The
purchase price allocation is as follows:

Schedule of  purchase price allocation  

    Purchase price allocation 
    Amount 
  
    Cash 
    $1,806,747 
  
    Restricted cash 
     600,065 
  
    Accounts receivable, net 
     7,933,515 
  
    Prepaid expenses and other current assets 
     1,158,554 
  
    Property and equipment 
     773,893 
  
    Goodwill 
     7,147,428 
  
    Intangible assets 
     12,000,000 
  
    Total assets acquired 
     31,420,202 

    Accounts payable 
     8,067,850 
  
    Accrued