Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 305

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 305
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 our cryptocurrencies as collateral
for additional borrowings, and the regulatory requirements to which we are subject, may correspondingly change. For example, the volatile
nature of cryptocurrencies may force us to liquidate our holdings to use it as collateral, which could be negatively impacted by any
disruptions in the cryptocurrency market, and if liquidated, the value of the collateral would not reflect potential gains in market
value of our cryptocurrency.

The
U.S. federal income tax treatment of transactions in digital assets is unclear.

Due
to the new and evolving nature of digital assets and the absence of comprehensive guidance with respect to digital assets, many significant
aspects of the U.S. federal income tax treatment of digital assets are uncertain. Our operations and dealings, in or in connection with
digital assets, as well as transactions in digital assets generally, could be subject to adverse tax consequences in the United States,
including as a result of development of the legal regimes surrounding digital assets, and our operating results, as well as the price
of digital assets, could be adversely affected thereby.

It
is also unclear what additional guidance on the treatment of digital assets for U.S. federal income tax purposes may be issued in the
future. Any such alteration of the current IRS positions or additional guidance could result in adverse tax consequences for us and could
have an adverse effect on the value of digital assets. Because of the evolving nature of digital assets, it is not possible to predict
potential future developments that may arise with respect to digital assets. Such developments may increase the uncertainty with respect
to the treatment of digital assets for U.S. federal income tax purposes.

ITEM
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Repurchases
of Shares

None.

ITEM
3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM
4. MINE SAFETY DISCLOSURES

Not
applicable.

ITEM
5. OTHER INFORMATION

During
the three months ended September 30, 2025, no director or officer of the Company adopted
or terminated
a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in
Item 408(a) of Regulation S-K.

51

ITEM
6. EXHIBITS

The
exhibits to this Form 10-Q are listed in the following Exhibit Index:

    Exhibit
    No.
     
    Description