Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 561

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 561
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4, the Company recognized revenue of $96 million.

F-4

Revenue recognition (continued) 

Description of the Matter (continued)

The principal consideration for our determination
that performing procedures relating to revenue recognition is a critical audit matter is a high degree of auditor effort in performing
procedures related to the Company’s revenue recognition.

How the Critical Audit Matter Was Addressed in
the Audit

Addressing the matter involved performing procedures
and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures
included, but were not limited to:

■Obtaining an understanding of
internal controls over the Company’s process relating to revenue recognition. 

■Testing revenue recognized for
a sample of revenue transactions by obtaining and inspecting source documents, such as customer contracts, invoices, impressions data,
and cash receipts, and recalculating the revenue recognized based on the terms of the customer contract and impressions data. 

■Confirming a sample of outstanding
customer balances as of December 31, 2024 and, for confirmations not returned, obtaining and inspecting source documents, such as customer
contracts, invoices, impressions data, and subsequent cash receipts.

/s/
Kreston GTA LLP

We
have served as the Company’s auditor since 2020.

Markham,
Ontario, Canada

April
15, 2025

F-5

GameSquare
Holdings, Inc.

Consolidated
Balance Sheets

    December 31, 2024  
    December 31, 2023 
  
    Assets 

    Cash 
    $12,094,950  
    $2,945,373 
  
    Restricted cash 
     1,054,030  
     47,465 
  
    Accounts receivable, net 
     21,330,847  
     16,459,684 
  
    Government remittances 
     119,721  
     1,665,597 
  
    Contingent consideration, current 
     -  
     207,673 
  
    Promissory note receivable, current 
     379,405  
     - 
  
    Prepaid expenses and other current assets 
     1,493,619  
     916,740 
  
    Total current assets 
     36,472,572  
     22,242,532 
  
    Investment 
     2,199,909