Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 156

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 156
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 operating activities is described in the Results of Operations section above.

Investing
Activities

Net cash used in investing activities was $0.1 million
for the six months ended June 30, 2025.

Net cash provided by investing activities was $2.8
million for the six months ended June 30, 2024.

Financing
Activities

Net cash provided by financing activities was $2.0
million for the six months ended June 30, 2025, which was primarily due $2 million promissory note issued on March 25, 2025, as discussed
in the recent developments section. Net cash provided by financing activities was $26.3 million for the six months ended June 30, 2024,
which was primarily due to the PIPE Financing on March 7, 2024 of $10 million and the spinoff of FaZe Media on May 15, 2024 and minority
interest investments into FaZe Media of $15.75 million during the second quarter of 2024.

Crypto Treasury and Digital Assets

GameSquare has purchased, directly and indirectly,
over $60 million ETH and NFT to support broader growth initiatives across the Company’s platform, however, GameSquare’s Board
has approved an ETH allocation of up to $250 million.

Commitments
and Contingencies

Management
commitments

The
Company is party to certain management contracts. These contracts require payments of approximately $0.6 million to be made upon the
occurrence of a change in control and termination without cause to certain officers of the Company. The Company is also committed to
payments upon termination without cause of approximately $1.1 million pursuant to the terms of these contracts. As a triggering event
has not taken place, these amounts have not been recorded in these consolidated financial statements.

Former
activities

The
Company was previously involved in oil and gas exploration activities in Canada, the United States and Colombia. The Company ceased all
direct oil and gas exploration activities in 2014. While management estimated that the exposure to additional liabilities from its former
oil and gas activities over and above the reclamation deposits held in trust for the Alberta Energy Regulator of $0.3 million to be remote,
the outcome of any such contingent matters is inherently uncertain.

Litigation
and arbitration

We
are subject to various claims, lawsuits and other complaints arising in the ordinary course of business. We record provisions for losses
when claims become probable, and the amounts are estim