Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 151

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 151
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    Exercised 
     (62,500) 
     0.86 
  
    Forfeited 
     (37,500) 
     0.90 
  
    Outstanding at March 31, 2025 
     503,042  
    $2.97 

The
grant-date fair values of RSUs are based on the Company’s stock price as of the grant date (see Note 4).

Shared-based
compensation expense related to the vesting of RSU’s was $26 thousand and $0.4 million for the three months ended March 31, 2025
and 2024, respectively, and is included in general and administrative expense on the consolidated statements of operations and comprehensive
loss.

12.
Warrants

(a)
Liability-classified warrants having CAD exercise price

The
functional currency of the Company is USD and certain of the Company’s warrants have an exercise price in CAD, resulting liability
classification of the warrants.

The
following is a summary of changes in the value of the warrant liability for the three months ended March 31, 2025:

Schedule of changes in value of warrant liability

    Amount 
  
    Balance, December 31, 2024 
    $14,314 
  
    Change in fair value 
     (5,347)
  
    Foreign exchange 
     24 
  
    Balance, March 31, 2025 
    $8,991 

The
following assumptions were used to determine the fair value of the warrant liability using the Black-Scholes option pricing model:

Schedule of assumptions fair value of warrant liability 

    March
    31, 2025  
    December
    31, 2024 
  
    Share price 
     CAD$0.85
                                              
     CAD$1.19

    Term, in years 
     2.50  
     2.75 
  
    Exercise price 
     CAD$9.68  
     CAD$9.68 
  
    Expected volatility 
     100.00% 
     100.00%
  
    Risk-free interest rate 
     2.44% 
     2.85%
  
    Expected dividend yield 
     0% 
     0%

    18

Volatility
was estimated by using the average historical volatility of the Company. The expected life in years represents the period of time that