Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 21

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 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
arising from the Merger is expected to be deductible for tax purposes.

    11

(b)
Sale of Complexity

On
March 1, 2024, the Company, through its wholly owned subsidiary GameSquare Esports (USA), Inc., entered into a Membership Interest Purchase
Agreement (the “MIPA”) to sell all of the issued and outstanding equity interest of NextGen Tech, LLC (“Complexity”)
to Global Esports Properties, LLC (the “Buyer”) (the “Transaction”).

Pursuant
to the MIPA, Buyer paid the Company aggregate purchase consideration with a Transaction closing date fair value of $7.9 million in exchange
for the equity interests of Complexity, including $0.8 million paid in cash upon closing of the transaction and issuance of a secured
subordinated promissory note (the “Note”) with a Transaction closing date fair value of $7.1 million. The Note was valued
using a discount rate of 15% (Level 3).

As
a result of the Transaction, during the three and nine months ended September 30, 2025 and 2024, Complexity met the requirements to be
reported as discontinued operations (see Note 19). The Company recognized a