Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 122

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 122
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at fair value or using the measurement alternative which is at cost minus impairment, if any, plus or minus changes resulting from observable
price changes in orderly transactions for the identical or a similar investment of the same issuer. All gains and losses on investments
in equity securities are recognized in the consolidated statements of operations and comprehensive loss.

Equity
securities accounted for under the measurement alternative, the Company assesses the securities for impairment indicators, at least annually,
or more frequently if there are any indicators of impairment. If the assessment indicates that the fair value of the investment is less
than its carrying value, the investment is impaired and an impairment charge equal to the excess of the carrying value over the related
fair value of the investment will be recorded.

Business
combinations

The
results of businesses acquired in a business combination are included in the Company’s consolidated financial statements from the
date of the acquisition. The Company uses the acquisition method of accounting and allocates the purchase price to the identifiable assets
and liabilities of the relevant acquired business at their acquisition date fair values. Any excess consideration over the fair value
of assets acquired and liabilities assumed is recognized as goodwill. The allocation of the purchase price in a business combination
requires the Company to perform valuations with significant judgment and estimates, including the selection of valuation methodologies,
estimates of future revenue, costs and cash flows, discount rates and selection of comparable companies. The Company engages the assistance
of valuation specialists in concluding on fair value measurements in connection with determining fair values of assets acquired and liabilities
assumed in a business combination. As a result, during the measurement period, which may be up to one year from the acquisition date,
the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion
of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any
subsequent adjustments are recorded to the consolidated statements of operations. Transaction costs associated with business combinations
are expensed as incurred and are included in selling, general and administrative expense in the consolidated statements of operations.

Impairment
of long-lived assets and goodwill

Long-lived
assets consist of property and equipment, right-of-use assets and intangible assets. The Company assesses for impairment of asset groups,
including intangible assets, at least annually, or more frequently if there are any indicators for impairment.

Goodwill
and indefinite life intangible assets are tested for impairment annually or when there is an indication that the asset may be impaired