Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 55

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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’s non-financial assets, such as property and equipment, goodwill and intangible assets, are recorded at fair value upon
a business combination and are remeasured at fair value only if an impairment charge is recognized. The Company’s investments, accounted
for under the measurement alternative of ASC 321, is remeasured at fair value only upon an observable price change or if an impairment
charge is recognized. The Company uses unobservable inputs to the valuation methodologies that are significant to the fair value measurements,
and the valuations require management’s judgment due to the absence of quoted market prices. The Company determines the fair value
of its held and used assets, goodwill and intangible assets using an income, cost or market approach as determined reasonable.

Digital
assets measured at fair value under ASC 350-60 are not included in the fair value hierarchy table above, in accordance with ASC
350-60.

(b)
NAV practical expedient

The
investment in Dialectic is measured at fair value using the NAV practical expedient under ASC 820-10 and is not categorized in the fair
value hierarchy. The NAV is calculated monthly by the general partner in accordance with ASC 946 using fair value for substantially all
underlying assets.

19.
Discontinued operations

(a)
Complexity

As
discussed in Note 4, on March 1, 2024, the Company sold Complexity and recognized a gain on disposition of $3.0 million, resulting in
Complexity meeting the requirements for presentation as discontinued operations.

The
Company recognized a pretax net loss of $1.4 million for the nine months ended September 30, 2024, in net income (loss) from discontinued
operations in the consolidated statements of operations and comprehensive loss in relation to Complexity. The pretax net loss of $1.4
million during the nine months ended September 30, 2024, includes revenue of $1.0 million, cost of revenue of $0.9 million, and operating
expenses of $1.5 million.

Complexity
had amortization and depreciation of $0.2 million for the nine months ended September 30, 2024. Complexity did not have significant capital
expenditures or significant noncash activity during the periods presented.

    26

(b)
FaZe Media

As
discussed in Note 4, on April 1, 2025, the Company sold FaZe Media and recognized a gain on disposition of $3.0 million,