Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 125

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 125
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 Exchange Agreement with Gigamoon,
effective April 1, 2025 (the “Exchange Agreement”), pursuant to which the Company agreed to accelerate the conversion
date under Gigamoon’s convertible debenture dated as of December 16, 2024, in the principal amount of $10 million. Pursuant to
the terms of the Exchange Agreement, FaZe Media Holdings, LLC transferred to Gigamoon 5,725,000 shares of Series A-1 Preferred Stock
of FaZe Media, Inc. In addition, GameSquare issued 87,946 shares of its common stock to Gigamoon as payment of accrued interest on the
convertible debenture through the conversion date.

As
a result of the Exchange Agreement, during the three and nine months ended September 30, 2025 and 2024, Faze Media met the requirements
to be reported as discontinued operations (see Note 19). The Company recognized a gain of $3.0 million in Net income (loss) from discontinued
operations in the consolidated statements of operations and comprehensive loss after offsetting the consideration received, conversion
of $10 million Gigamoon convertible debenture discussed above (see Note 10), with the carrying value of the disposed assets and liabilities.
The fair value of consideration received was concluded to be $10 million, the principal value of convertible debt being converted by
Gigamoon. Faze Media assets and liabilities disposed had a net carrying value of $7.0 million and consist of $0.6 million of cash, $2.9
million of accounts receivable, $0.2 million of prepaid expenses and other current assets, $1.6 million of amounts due from GameSquare,
$0.1 million of property and equipment, $0.7 million of right-of-use assets, $9.6 million of intangible assets and $7.1 million of goodwill,
partially offset by $0.2 million of accounts payable, $1.7 million of accrued liabilities, $0.5 million of deferred revenue, $0.7 million
of lease liabilities and $12.9 million in non-controlling interests in Faze Media.

5.
Digital assets

The
Company holds Ethereum (“ETH”), Animecoin (“ANIME”), and REKT, all of which are within the scope of ASC 350-60.

The
following table presents a roll forward of digital assets held directly by the Company:

Schedule of digital assets 

    ETH