Company: GMER
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001868
Chunk: 2

Company: GOOD GAMING, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 2
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. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.
On December 31, 2024 and December 31, 2023, the Company had 10,000,000 and 10,000,000 potentially dilutive shares from outstanding preferred
stock, respectively.

Income
Taxes

Potential
benefits of income tax losses are not recognized in the accounts until realization is more likely than not. Under 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 statement 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 not consolidated financial statements, are recorded in the statement
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.

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:

Level
1

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

    20

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