Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 19

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 based Click’s EBITDA for the 12-month period beginning January 1,
2027.

The
acquisition of Click was accounted for using the acquisition method of accounting under ASC 805, Business Combinations, which
requires that the Company recognize the identifiable assets acquired and the liabilities assumed at their fair values on the date of
acquisition.

    9

The
following preliminary table summarizes the consideration for the acquisition:

Schedule of purchase consideration 

    Purchase consideration 
    Amount 
  
    Cash at closing 
    $5,274,237 
  
    Deferred purchase consideration 
     3,996,548 
  
    Contingent purchase consideration, non-current 
     807,000 
  
    Total purchase price 
    $10,077,785 

The
preliminary purchase price allocation is as follows:

Schedule of preliminary purchase
price allocation 

    Purchase price allocation 
    Amount 
  
    Cash 
    $701,306 
  
    Accounts receivable, net 
     2,363,740 
  
    Government remittances 
     100,763 
  
    Prepaid expenses and other current assets 
     125,536 
  
    Investment 
     133,133 
  
    Property and equipment 
     40,032 
  
    Goodwill 
     3,805,052 
  
    Intangible assets 
     5,100,000 
  
    Total assets acquired 
     12,369,562 

    Accounts payable 
     1,132,919 
  
    Accrued liabilities 
     1,158,858 
  
    Total liabilities assumed 
     2,291,777 
  
    Net assets acquired 
    $10,077,785 

Measurement
period adjustments

Where
provisional values are used in accounting for a business combination, they may be adjusted in subsequent periods, not to exceed twelve
months. The primary areas that are subject to change relate to the fair value of the purchase consideration transferred and purchase
price allocations related to the fair values of certain tangible assets, the valuation of intangible assets acquired, and residual goodwill.
The Company expects to continue to obtain information to assist in determining the fair value of the net assets acquired during the measurement
periods.

Goodwill

The
difference between the estimated acquisition date fair value of the consideration transferred and the estimated values assigned to the
assets acquired and liabilities assumed represents goodwill of $3.8 million.

The