Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 211

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 211
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) revenue projections; (ii)
royalty rates of 3.0%, 6.0% and 10%; (iii) tax rates of 25.0%, 26.0%, and 26.5% (iv) discount rates of 10%, 11.5% and 12.0%; (v) long-term
growth rate of 3.0%. These assets are amortized on a straight-line basis over the estimated useful life of five years.

ii)
Intangible assets, brand

The
fair value of the brand name intangible asset of $3.2 million was determined based on the relief from royalty method under the income
approach. The brand name intangible asset was valued using Level 3 inputs which consisted of the following key inputs: (i) revenue projections;
(ii) royalty rates of 1.0%, 1.5% and 3.0%; (iii) tax rates of 25.0%, 26.0% and 26.5% (iv) discount rates of 12.0%, 12.5% and 13.0%; (v)
long-term growth rate of 3.0%. These assets are amortized on a straight-line basis over the estimated useful life of ten years.

iii)
Intangible assets, customer relationships

The
fair value of the customer relationships intangible asset of $9.6 million was determined based on the relief from royalty method under
the income approach. The customer relationship intangible asset was valued using Level 3 inputs which consisted of the following key
inputs: (i) revenue projections; (ii) attrition rates of 5.0%, 7.5%, and 15%; (iii) tax rates of 25.5%, 26.0%, and 27.0% (iv) discount
rates of 12.5%,13.0%, and 13.5%. These assets are amortized on a straight-line basis over the estimated useful life of twenty years.

iv)
Goodwill

The
difference between the acquisition date fair value of the consideration transferred and the values assigned to the assets acquired and
liabilities assumed represents goodwill of $25.6 million.

The
goodwill recorded represents the following:

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

    ●
    Intangible
    assets that do not qualify for separate recognition such as