Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 35

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 35
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 costs and fees related
to the convertible debt is recognized in operating expense in the consolidated statements of operations and comprehensive loss as incurred
and not deferred. Changes in fair value of the convertible debt is recognized as a separate line in the consolidated statements of operations
and comprehensive loss.

Contingencies

The
Company estimates loss contingencies in accordance with ASC 450-20, Loss Contingencies, which states that a loss contingency shall
be accrued by a charge to income if both of the following conditions are met: (i) information available before the consolidated financial
statements are issued or are available to be issued indicates that it is probable that a liability had been incurred at the date of the
consolidated financial statements and (ii) the amount of loss can be reasonably estimated. Management regularly evaluates current information
available to determine whether such accruals should be adjusted and whether new accruals are required.

Off-Balance
Sheet Arrangements

We
do not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on the
results of operations or financial condition of the Company including, without limitation, such considerations as liquidity and capital
resources.

Critical
Accounting Policies and Estimates

Our
discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements,
which have been prepared in accordance with GAAP. The preparation of our condensed consolidated financial statements and related disclosures
requires us to make estimates, assumptions, and judgments as of the balance sheet date that affect the reported amounts of assets, liabilities,
revenues, costs and expenses and related disclosures. Our actual results may differ from these estimates under different assumptions
and conditions. The accounting estimates described in Item 7 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2024 are those
we consider critical in preparing our unaudited Condensed Consolidated Financial Statements. There were no changes to the Company’s
critical accounting policies or estimates during the six months ended June 30, 2025.

Recent
Accounting Pronouncements

See
Note 3 to our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for a description of recently
adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted, the timing of their adoptions and our
assessment, to the extent we have made one, of their potential impact on our financial condition and results of operations.

ITEM
3. QU