Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 460

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 460
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 profit; and differences relating to investments in subsidiaries, associates,
and jointly controlled entities to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax
provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates
enacted or substantively enacted at the financial position reporting date applicable to the period of expected realization or settlement.

A
deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the
asset can be utilized.

    F-20

Deferred
tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities
and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and
liabilities on a net basis.

(z)
Concentration of credit risk

The
Company places its cash, which may at times be in excess of United States’ Federal Deposit Insurance Corporation insurance limits,
with high credit quality financial institutions and attempts to limit the amount of credit exposure with any one institution.

The
Company had one customer whose revenue accounted for approximately 47% and 54% of total revenue for the year ended December 31, 2024
and 2023, respectively.

No
customer individually accounted for more than 10%
of the Company’s accounts receivable as of December 31, 2024 and 2023.

(aa)
Discontinued operations and assets held for sale

The
Company classifies assets and liabilities of a business or asset group as held for sale, and the results of its operations as income
(loss) from discontinued operations, net, for all periods presented, when (i) the Company commits to a plan to divest a business or asset
group, actively begins marketing it for sale, and when it is deemed probable of occurrence within the next twelve months, and (ii) when
the business or asset group reflects a strategic shift that has, or will have, a major effect on the Company’s operations and its
financial results.

Non-current
assets or disposal groups classified as held for sale are measured at the lower of carrying amounts and fair value less costs to sell.

In
determining whether a group of assets disposed (or to be disposed) of should be presented as a discontinued operation, the Company makes
a determination of whether the criteria for held-for-sale classification is met and whether the disposition represents a strategic shift