Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 130

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 130
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 rarity and historical significance
as one of only 24 Ape CryptoPunks in existence, the Cowboy Ape is widely regarded as the most desirable CryptoPunks of the 10,000-piece
collection and NFTs in general.

In
addition to the acquisition of the Cowboy Ape NFT, the Company acquired an additional seven crypto punks using ETH valued at $1.8 million
at the time of purchase.

Digital
assets outside the scope of ASC 350-60, such as non-fungible tokens (“NFTs”), are accounted for as indefinite-lived intangible
assets under ASC 350-30.

There
were no impairment charges related to indefinite-lived intangible assets incurred during the three and nine months ended September 30,
2025.

    15

8.
Leases

On
June 30, 2021, the Company acquired Complexity. Complexity leased a building in Frisco, Texas. Upon the sale of Complexity (see Note
4), the lease was assigned to GameSquare Esports (USA), Inc. and the Company entered into an agreement to sublease the building to Complexity
for a 12-month period. The lease has an original lease period expiring in April 2029. The lease agreement does not contain any material
residual value guarantees or material restrictive covenants.

On
April 1, 2024, GameSquare Holdings, Inc. leased a building in Culver City, CA, which it later assigned to Faze Media Inc. on May 15,
2024. The lease has an original lease period expiring in March 2027. The lease agreement does not contain any material residual value
guarantees or material restrictive covenants. The Company disposed of Faze Media Inc. on April 1, 2025, including the lease right-of-use
assets and lease liabilities (see Note 19).

The
components of operating lease expense are as follows:

Schedule of components operating lease expense 

    2025  
    2024  
    2025  
    2024 

    Three months ended September 30,  
    Nine months ended September 30, 

    2025  
    2024  
    2025  
    2024 
  
    Operating lease expense 
     135,772  
     229,509  
     501,052  
     501,052