Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 103

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 103
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 2025  
    2024  
    2025  
    2024 
  
    Operating lease expense 
     135,771  
     135,771  
     365,280  
     271,543 
  
    Variable lease expense 
     64,025  
     78,170  
     149,949  
     124,510 
  
    Total operating lease costs 
     199,796  
     213,941  
     515,229  
     396,053 

As
of June 30, 2025, the remaining lease-term and discount rate on the Frisco, TX lease was 3.8 years and 8.3%, respectively.

Maturities
of the lease liability are as follows:

Schedule of Maturities of Lease Liability 

    2025 
     272,904 
  
    2026 
     545,808 
  
    2027 
     545,808 
  
    2028 
     545,808 
  
    2029 
     181,936 
  
    Thereafter 
     - 
  
    Total lease payments 
     2,092,264 
  
    Less: Interest 
     (292,749)
  
    Total lease liability 
    $1,799,515 

7.
Line of credit

On
September 14, 2023, the Company entered into an accounts receivable financing and security agreement with a maximum availability of $10.0
million for a three-year term with SLR Digital Finance, LLC (the “LOC”). The LOC matures on September 14, 2026. Interest
accrues on the outstanding principal amount of the LOC at a rate equal to the greater of Prime plus 4.00% or 9.50%, per annum. The terms
of the LOC provide for the lender to fund 85% of the purchased accounts receivable and it includes various service fees.

As
of June 30, 2025, the outstanding principal, and unpaid accrued interest, on the LOC was $3.2 million. During the six months ended June
30, 2025 and 2024, the Company recognized interest expense of $0.3 million and $0.5 million on the LOC.

    13

8. Convertible debt

Yorkville
CD and SEPA