Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 17

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 17
---
 alternative which is at cost minus impairment, if any, plus or minus changes resulting from observable
price changes in orderly transactions for the identical or a similar investment of the same issuer. All gains and losses on investments
in equity securities are recognized in the consolidated statements of operations and comprehensive loss.

Equity
securities accounted for under ASC 321 without a readily determinable fair value are accounted for using the net asset value (“NAV”)
practical expedient in accordance with ASC 820 where applicable and when elected by the Company. The NAV is calculated by the general
partner in a manner consistent with ASC 946, Financial Services — Investment Companies.

    8

Equity
securities accounted for under ASC 321 without a readily determinable fair value and for which the NAV practical expedient has not been
elected are accounted for under the measurement alternative. The Company assesses the securities for impairment indicators, at least
annually, or more frequently if there are any indicators of impairment. If the assessment indicates that the fair value of the investment
is less than its carrying value, the investment is impaired and an impairment charge equal to the excess of the carrying value over the
related fair value of the investment will be recorded.

3.
Recent accounting pronouncements

(a)
Adopted

Effective
January 1, 2025, the Company adopted ASU 2023-08, Accounting for Crypto Assets (ASC 350-60), which requires certain crypto assets to
be measured at fair value with changes recognized in net income and presented separately on the balance sheet. The Company applied the
provisions of ASU 2023-08 to its initial crypto asset purchases during the three months ended September 30, 2025. There were no prior-period
crypto asset holdings and no cumulative-effect adjustment was required.

In
December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.
2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires that
public business entities must annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information
for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent
of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). This ASU is effective