Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 463

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 463
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 presented in the financial statements. ASU 2023-07 will be applicable for the Company’s financial statements for
the year ended December 31, 2024. Management is currently evaluating and understanding the requirements under this new standard.

    F-22

4.
Acquisitions and divestitures

(a)
Reverse acquisition of Engine Gaming and Media, Inc.

On
April 11, 2023, GSQ completed its plan of arrangement with Engine Gaming and Media, Inc. (“Engine”) resulting in Engine acquiring
100% of the issued and outstanding securities of GSQ.

Resulting
from the Arrangement, Engine acquired all issued and outstanding GSQ shares in exchange for 0.020655 of an Engine common share for each
GSQ share (the “Exchange Ratio”). Each outstanding option of GSQ was exchanged for an Engine option entitling the holder
to a number of Engine common shares, as adjusted on the basis of the Exchange Ratio, and be subject to exercise thereof in accordance
with the terms of the options, including payment of the exercise price, which will also be adjusted based upon the Exchange Ratio. All
other material terms of the options remained the same. Each outstanding restricted share unit of GSQ was exchanged for an Engine restricted
share unit entitling the holder to a number of Engine common shares, as adjusted on the basis of the Exchange Ratio. All other material
terms of the restricted share units remained the same. Each outstanding warrant of GSQ was adjusted pursuant to its governing contractual
instrument to entitle the holder to receive, upon due exercise, Engine common shares, adjusted on the basis of the Exchange Ratio.

At
completion of the Arrangement, Engine Gaming and Media, Inc. changed its name to GameSquare Holdings, Inc.

The
Arrangement was accounted for as a reverse acquisition, with GSQ being treated as the acquiring entity for accounting and financial reporting
purposes. Engine is a data-driven, gaming, media and influencer marketing platform company.
The Arrangement has expanded GSQ’s content, advertiser, and influencer businesses.

GSQ
incurred transaction costs of $2.7 million associated with the Arrangement. All such costs were expensed as incurred. The loss attributed
to Engine’s operations from the acquisition date to December 31, 2023, was $3.8 million, with revenue of $29.8 million.

The
Arrangement was accounted for using the acquisition method of accounting under ASC 805, Business Combinations,