Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 33

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 an accounts receivable financing and security agreement with a maximum availability of $10.0
million for a three-year term with SLR Digital Finance, LLC (the “LOC”). The LOC matures on September 14, 2026. Interest
accrues on the outstanding principal amount of the LOC at a rate equal to the greater of Prime plus 4.00% or 9.50%, per annum. The terms
of the LOC provide for the lender to fund 85% of the purchased accounts receivable and it includes various service fees.

During
the third quarter of 2025, in connection with the discontinued operations of Frankly, which was the primary borrower under the line of
credit, the Company paid down the balance under the LOC. As of September 30, 2025, the outstanding principal, and unpaid accrued interest,
on the LOC was $(119) thousand, as the lender had continued to collect certain receivables on behalf of the Company subsequent to the
balance being paid. During the nine months ended September 30, 2025 and 2024, the Company recognized interest expense of $0.3 million
and $0.7 million on the LOC.

    16

10.
Convertible debt

Yorkville
CD and SEPA

On
July 8, 2024, the Company entered into a Standby Equity Purchase Agreement (“SEPA”) with YA II PN, LTD, a Cayman Islands
exempt limited partnership (“Yorkville”), pursuant to which the Company has the right to sell to Yorkville up to $20.0 million
of its shares of common stock, par value $0.0001 per share, subject to certain limitations and conditions set forth in the SEPA.

Each
advance the Company requests in writing to Yorkville under the SEPA may be for a number of shares of common stock up to the greater of
(i) 500,000 shares or (ii) such amount as is equal to 100% of the average daily volume traded of the common stock during the five trading
days immediately prior to the date the Company requests each advance. The shares of common stock purchased pursuant to an advance delivered
by the Company will be purchased at a price equal to 97% of the lowest daily VWAP of the shares of common stock during the three consecutive
trading days commencing on the date of the delivery of the advance notice.

The
SEPA will automatically terminate on the earliest to occur of (i) the