Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 282

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 4
Chunk 282
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)(A) and (C) of the 1940 Act, a company generally will be deemed to be an “investment company” for purposes
of the 1940 Act if (1) it is, or holds itself out as being, engaged primarily, or proposes to engage primarily, in the business of investing,
reinvesting or trading in securities or (2) it engages, or proposes to engage, in the business of investing, reinvesting, owning, holding
or trading in securities and it owns or proposes to acquire investment securities having a value exceeding 40% of the value of its total
assets (exclusive of U.S. government securities and cash items) on an unconsolidated basis. We do not believe that we are an “investment
company,” as such term is defined in the 1940 Act, and are not registered as an “investment company” under the 1940
Act as of the date of this prospectus.

While
senior SEC officials have stated their view that Ethereum is not a “security” for purposes of the federal securities laws,
a contrary determination by the SEC could lead to our classification as an “investment company” under the 1940 Act, if the
portion of our assets consists of investments in Ethereum exceeds 40% safe harbor limits prescribed in the 1940 Act, which would subject
us to significant additional regulatory controls that could have a material adverse effect on our business and operations and may also
require us to change the manner in which we conduct our business.

We
monitor our assets and income for compliance under the 1940 Act and seek to conduct our business activities in a manner such that we
do not fall within its definitions of “investment company” or that we qualify under one of the exemptions or exclusions provided
by the 1940 Act and corresponding SEC regulations. If Ethereum is determined to constitute a security for purposes of the federal securities
laws, we would take steps to reduce the percentage of Ethereum that constitute investment assets under the 1940 Act. These steps may
include, among others, selling Ethereum that we might otherwise hold for the long term and deploying our cash in non-investment assets,
and we may be forced to sell our Ethereum at unattractive prices. We may also seek to acquire additional non-investment assets to maintain
compliance with the 1940 Act, and we may need to incur debt, issue additional equity or enter into other financing arrangements that
are not otherwise attractive to our business. Any