Company: GMER
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010826
Chunk: 7

Company: GOOD GAMING, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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 and 2024, the Company
had 32,392,004 and 32,392,004 potentially dilutive shares from outstanding preferred stock and outstanding warrants, respectively.

Income Taxes

Potential benefits of income tax losses are not recognized
in the accounts until realization is more likely than not. Pursuant to ASC 740, the Company is required to compute tax asset benefits
for net operating losses carried forward. The potential benefits of net operating losses have not been recognized in these consolidated
financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried
forward in future years. Unrecognized tax positions, if ever recognized in the consolidated financial statements, are recorded in the
statements of operations as part of the income tax provision. Our policy is to recognize interest and penalties accrued on uncertain tax
positions, if any, as part of the income tax provision. The Company has no liability for uncertain tax positions. Unrecognized tax positions,
if ever recognized in the consolidated financial statements, are recorded in the statements of operations as part of the income tax provision.
The Company’s policy is to recognize interest and penalties accrued on uncertain tax positions, if any, as part of the income tax
provision. The Company has no liability for uncertain tax positions.

Financial Instruments

ASC 820, “Fair Value Measurements” and
ASC 825, Financial Instruments, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs
when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the
inputs used to measure fair value. A financial instrument categorized within the fair value hierarchy is based upon the lowest level of
input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair
value:

    F-6

Level 1

Level 1 applies to assets or liabilities for which
there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which
there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities
in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less
active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated
by, observable market data.

Level 3

Level 3 applies to