Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 120

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 120
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, 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 price allocation 
    Amount 
  
    Cash 
    $1,806,747 
  
    Restricted cash 
     600,065 
  
    Accounts receivable, net 
     7,933,515 
  
    Prepaid expenses and other current assets 
     1,158,554 
  
    Property and equipment 
     773,893 
  
    Goodwill 
     7,147,428 
  
    Intangible assets 
     12,000,000 
  
    Total assets acquired 
     31,420,202 
  
    Accounts payable 
     8,067,850 
  
    Accrued liabilities 
     6,844,817 
  
    Deferred revenue 
     1,920,535 
  
    Total liabilities assumed 
     16,833,202 
  
    Net assets acquired 
    $14,587,000 

Goodwill

The
difference between the estimated acquisition date fair value of the consideration transferred and the estimated values assigned to the
assets acquired and liabilities assumed represents goodwill of $7.1 million.

The
goodwill recorded represents the following:

    ●
    Cost
    savings and operating synergies expected to result from combining the operations of FaZe with those of the Company.

    ●
    Intangible
    assets that do not qualify for separate recognition such as the assembled workforce.

Goodwill