Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 585

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 585
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 common shareholders in accordance with ASC 260-10, Earning Per Share. Basic
net income (loss) per share attributable to common shareholders is calculated by dividing net income (loss) attributable to common shareholders
by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated
by dividing net income (loss) attributable to common shareholders by weighted-average common shares outstanding during the period plus
all potentially dilutive common shares outstanding during the period, such as warrant shares.

Diluted
earnings per share is computed by dividing undistributed earnings allocated to common stockholders for the period by the weighted average
number of common shares outstanding during the period, plus the dilutive effect of outstanding preferred shares, Options and unvested
share units, and warrants outstanding pursuant to the treasury stock method.

(w)
Share-based payments

The
Company’s share-based payment plan allows Company employees and consultants to acquire shares of the Company. The fair value of
share-based payment awards granted is recognized within share-based payments expense with a corresponding increase in equity.

    F-19

Options

Each
tranche of the Company’s Options is considered a separate award with its own vesting period and grant date fair value. The fair
value is measured at grant date and each tranche is recognized on a straight-line basis over the period during which the share purchase
Options vest. The fair value of the share-based payment awards granted is measured using the Black-Scholes option pricing model taking
into account the terms and conditions upon which the awards were granted such as stock price, term, and stock volatility. At each financial
position reporting date, the amount recognized as an expense is adjusted to reflect the actual number of awards, for which the related
service and non-market vesting conditions are expected to be met. Share based payments expense is adjusted for subsequent changes in
management’s estimate of the number of Options that are expected to vest.

Restricted
share units

For
each Restricted Share Units (“RSU”) granted, the Company recognizes an expense equal to the market value of a common share
at the date of grant and for each RSU granted, the Company recognizes an expense equal to the fair value of the RSU estimated using a
Black Scholes model at grant date, based on the number of RSUs expected to vest, recognized over the term of the vesting period, with
a corresponding increase to additional paid-in capital. Share based payments expense is adjusted for subsequent changes