Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 1363

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 1363
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 the outstanding principal, and unpaid accrued interest, on the LOC was $3.5 million. During the year ended December
31, 2024 and 2023, the Company recognized interest expense of $0.9 million and $0.2 million on the LOC.

11.
Convertible debt

In
conjunction with completion of the Arrangement (see Note 4), the Company assumed two convertible debt instruments: a $1.3 million convertible
debenture issued to Three Curve Capital LP (“Three Curve CD”) and a $5.0 million convertible debenture issued to EB Acquisition
Company, LLC (“EB CD”). The Company elected the FVO for recognition of the Three Curve CD and EB CD as permitted under ASC
825.

King
Street CD

On
December 29, 2023, the Company refinanced the EB CD. The EB CD was exchanged for a new senior secured convertible debenture in the principal
amount of $5.8 million with an affiliate of EB Acquisition Company, LLC, King Street Partners LLC (“King Street CD”). The
refinance transaction was accounted for as an extinguishment of the EB CD. After remeasuring the EB CD at fair value as of December 29,
2023, the Company recognized a $2.2 million loss on extinguishment in the consolidated statements of operations and comprehensive loss
related to the EB CD. The Company paid a fee of $0.7 million to King Street Partners LLC in relation to the refinance transaction which
was included in the determination of the loss on extinguishment.

The
Company elected the FVO for the recognition of the new King Street CD.

    F-33

On
June 21, 2024, the Company received a notice from King Street, the holder of a 12.75% convertible debenture with a principal amount of
$5.8 million dated December 29, 2023. The notice objected to the Company’s ability to maintain its 51% economic interest in FaZe
Media, Inc. and other related matters.

As
a result, King Street requested the immediate repayment of the full principal amount, along with any premiums and accrued interest.

On
October 1, 2024, the Company entered into a Settlement and Release Agreement with King Street pertaining to the King Street convertible
debenture.

The
outstanding balances due under King Street convertible debenture were paid in full on July 10, 2024, including $5