Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 78

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 78
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U
2023-07”). ASU 2023-07 is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures
about significant segment expenses. The provisions of ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and
interim periods within fiscal years beginning after December 15, 2024. The adoption of this ASU did not have a significant impact on the Company’s consolidated financial statements.

4.
Acquisitions and divestitures

(a)
FaZe Merger

On
March 7, 2024, the Company completed its acquisition of FaZe (the Merger). Prior to the Merger, the Company created GameSquare Merger
Sub I, Inc. (“Merger Sub”) to effect the Merger. As a result of the Merger, Merger Sub merged with FaZe, with FaZe continuing
as the surviving corporation and as a wholly-owned subsidiary of the Company.

    8

The
Company acquired all issued and outstanding FaZe common shares in exchange for 0.13091 of a GameSquare common share for each FaZe common
share (the “Exchange Ratio”). All outstanding FaZe equity awards and warrants to purchase shares of FaZe common stock were
acquired and exchanged for GameSquare equity awards and warrants to purchase GameSquare common stock on substantially the same terms,
with exercise prices, where applicable, and shares issuable adjusted for the Exchange Ratio.

The
Merger was accounted for using the acquisition method of accounting under ASC 805, Business Combinations, which requires that
the Company recognize the identifiable assets acquired and the liabilities assumed at their fair values on the date of acquisition. 

The
following table summarizes the consideration for the acquisition:

Schedule of purchase consideration 

    Purchase consideration 
    Number of shares  
    Amount 
  
    Common shares 
     10,132,884  
    $12,763,000 
  
    Warrants - Equity 
     775,415  
     26,000 
  
    Options - Vested 
     1,169,619  
     1,256,000 
  
    RSUs / RSAs - Vested 
     413,988  
     542,000 
  
    Total purchase price 
     12,491,906  
    $14,587,000 

The purchase price allocation is as follows:

Schedule of preliminary purchase
price allocation 

    Purchase