Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 738

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 738
---
 allowance
is provided for deferred tax assets that, based on available evidence, are more likely than not to be realized.

The
Company’s accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of its net
deferred tax assets. The Company primarily considered such factors as its history of operating losses, the nature of the company’s
deferred tax assets, and the timing, likelihood and amount, if any, of future taxable income during the periods in which those temporary
differences and carryforwards become deductible. The Company believes that it is more likely than not that the deferred tax assets will
be unable to be realized; accordingly, a full valuation allowance has been established and no deferred tax asset is shown in the Company’s
balance sheet. As of December 31, 2024 and 2023, a valuation allowance of $117.7 million and $66.8 million, respectively, was established
mainly due to the realizability of Federal, State, and Foreign NOLs that will not likely be realized.

The
components of net deferred taxes are as follows:

 Schedule of components of deferred taxes

    December 31, 2024  
    December 31, 2023 

    $  
    $ 
  
    Deferred tax assets 

    Charitable Contribution 
     206,308  
     3,876 
  
    Fixed Assets 
     341,926  
     - 
  
    Stock Compensation 
     735,725  
     - 
  
    Section 163(j) Interest limitation 
     2,495,754  
     - 
  
    Capital Gain 
     650,608  
     621,686 
  
    Unrealized Gain 
     821,893  
     821,893 
  
    Organization Costs 
     52,103  
     60,735 
  
    Accrued Expenses 
     2,929,799  
     3,316,254 
  
    Net operating Loss 
     111,190,696  
     64,233,526 
  
    R&D Credit 
     196,501  
     196,501 
  
    Lease Liability 
     340,825  
     873,716 
  
    Section 174 Expenses 
     35,396  
     - 
  
    Gross deferred tax assets 
     119,997,