Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 188

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 188
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 the carrying value of the assets and our continued existence is dependent
upon our ability to raise financing in the near term, and ultimately the achievement of profitable operations.

The
Company has not yet realized profitable operations and has incurred significant losses to date resulting in an accumulated deficit
of $131.2 million as of September 30, 2025 ($122.2 million as of December 31, 2024). The recoverability of the carrying value of the
assets and the Company’s continued existence is dependent upon the achievement of profitable operations, or the ability of the
Company to raise alternative financing, if necessary. While management has been historically successful in raising the necessary
capital, it cannot provide assurance that it will be able to execute its business strategy or be successful in future financing
activities. As of September 30, 2025, the Company had a working capital deficiency of $14.1 million (as of December 31, 2024, a
working capital deficiency of $18.3 million) which is comprised of current assets less current liabilities.

These
conditions indicate the existence of a material uncertainty that raises substantial doubt about the Company’s ability to continue
as a going concern and, therefore, the Company may be unable to realize its assets and discharge its liabilities in the normal course
of business.

As
of September 30, 2025, cash and restricted cash totaled $7.5 million, compared to $13.1 million as of December 31, 2024.

40

While
management has been historically successful in raising the necessary capital, it cannot provide assurance that it will be able to execute
its business strategy or be successful in future financing activities.

As
discussed in recent developments above, in July 2025, we raised gross proceeds of $89.6 million over three offerings. We raised $9.2
million on July 9, 2025 through a registered equity offering of our common shares, $75.3 million on July 18, 2025 through a registered
equity offering of our common shares and $5.15 million on July 24, 2025 through a private placement of our Series A-1 convertible preferred
shares.

Our
ability to maintain sufficient liquidity could be affected by various risks and uncertainties including, but not limited to, our ability
to raise additional funds through financing, those related to consumer demand and acceptance of our products and services, our ability
to collect payments as they become due, achieving our internal