Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 13

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 13
---
 youth culture
audiences. GameSquare’s end-to-end platform includes Gaming Community Network (“GCN”), a digital media company focused
on gaming and esports audiences, Swingman LLC dba as Zoned, a gaming and lifestyle marketing agency, Code Red Esports Ltd. (“Code
Red”), a UK based esports talent agency, Click Management Pty Ltd, a Australia based gaming and esports talent agency, FaZe Holdings
Inc. (“FaZe”), a lifestyle and media platform rooted in gaming and youth culture whose premium brand, talent network, and
large audience can be monetized across a variety of products and services, GameSquare Esports, (USA), Inc. dba as Fourth Frame Studios,
a creative production studio, Mission Supply, a merchandise and consumer products business, Stream Hatchet, live streaming data and analytics
platform, and Sideqik a social influencer marketing platform.

(b)
Going concern

These
accompanying financial statements have been prepared on a going concern basis, which contemplates that the Company will be able to realize
its assets and discharge its liabilities in the normal course of business. Accordingly, they do not give effect to adjustments that would
be necessary should the Company be unable to continue as a going concern, and therefore be required to realize its assets and liquidate
its liabilities and commitments in other than the normal course of business and at amounts different from those in the unaudited condensed
consolidated financial statements. Such adjustments could be material. It is not possible to predict whether the Company will be able
to raise adequate financing or ultimately attain profit levels of operations.

The
Company has not yet realized profitable operations and has incurred significant losses to date resulting in an accumulated deficit of
$131.2 million as of September 30, 2025 ($122.2 million as of December 31, 2024). The recoverability of the carrying value of the assets
and the Company’s continued existence is dependent upon the achievement of profitable operations, or the ability of the Company
to raise alternative financing, if necessary. While management has been historically successful in raising the necessary capital, it
cannot provide assurance that it will be able to execute its business strategy or be successful in future financing activities. As of
September 30, 2025, the Company had a working capital deficiency of $14.1 million (as of December 31, 2024, a working capital deficiency
of $18.3 million) which is comprised of current assets less current liabilities.

These