Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 596

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 596
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    Amount 
  
    Cash 
    $1,806,747 
  
    Restricted cash 
     600,065 
  
    Accounts 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 

Measurement
period adjustments

Where
provisional values are used in accounting for a business combination, they may be adjusted in subsequent periods, not to exceed twelve
months. The primary areas that are subject to change relate to the fair value of the purchase consideration transferred and purchase
price allocations related to the fair values of certain tangible assets, the valuation of intangible assets acquired, and residual goodwill.
The Company expects to continue to obtain information to assist in determining the fair value of the net assets acquired during the measurement
periods.

Significant
judgments and assumptions related to the valuation and useful lives of certain classes of assets acquired are as follows:

i)
Intangible assets, talent network

The
fair value of the talent network intangible asset of $1.1 million was determined based on the replacement cost method under the cost
approach. The talent network intangible asset was valued using Level 3 inputs which consisted of the following key inputs: (i) direct
costs to reproduce; (ii) time to recreate of 2 years; (iii) developers profit margin of 3% (iv) discount rate of 13%; (v) obsolescence
rate of 25%. These assets are amortized on a straight-line basis over the estimated useful life of two years.

ii)
Intangible assets, brand

The
fair value of the brand name intangible asset of $7.2 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