Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 952

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 952
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 expenses and other current assets

Prepaid
expenses and other assets consist primarily of prepaid expenses such as insurance as well as acquisition costs of players and security
deposits. Acquisition costs of players are amortized on a straight-line basis over the players’ contract terms.

(i)
Promissory note receivable and allowance for credit losses

The
Company received a secured subordinated promissory note as part of the purchase consideration received for the sale of Complexity and
sale of Frankly Media assets (see Note 4). The promissory note receivables are classified as not held-for-sale and measured at amortized
cost, net of any allowance for credit losses, in accordance with ASC 310, Receivables. The Company maintains an allowance for
expected credit losses to reflect the expected collectability of the promissory note receivable based on historical collection data and
specific risks identified, as well as management’s expectation of future economic conditions. At each reporting date the Company
assesses whether the credit risk on its promissory note receivable has increased significantly since initial recognition.

The
promissory note receivables were initially recorded at  transaction closing date fair value on March 1, 2024 (Sale of Complexity) and
on May 31, 2024 (Sale of Frankly Media assets) (see Note 4) and no allowance for credit losses had been recognized as of December 31,
2024.

(j)
Property and equipment

Property
and equipment are carried at historical cost less any accumulated depreciation and impairment losses. Historical cost includes the acquisition
cost or production cost as well as the costs directly attributable to bringing the asset to the location and condition necessary for
its use in operations. Property and equipment are depreciated at rates calculated to write off the cost of property and equipment, less
their estimated residual value, over the estimated useful lives, as follows:

 Schedule of estimated useful lives of property, plant and equipment 

    Computer
    equipment 
    3
    to 5 years, straight-line
  
    Furniture
    and fixtures 
    5
    years, straight-line
  
    Leasehold
    improvements 
    Term
    of the lease 

Expenditures
for maintenance and repairs are charged to operations in the period in which the expense is incurred. When assets are retired or otherwise
disposed of, the related costs and accumulated depreciation are removed from the balance sheet and any resulting gain or loss is reflected
in operations in the period realized