Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 1119

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 1119
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3. Furthermore, 877,891 of Engine’s warrants, with an acquisition date fair value of $30 thousand, included in
the Engine reverse acquisition purchase consideration (see Note 4), have an exercise price in USD and are equity-classified.

As
discussed in Note 4 above in conjunction with the acquisition of FaZe, the Company issued 775,415 warrants with an acquisition fair value
of $26 thousand, included in the FaZe acquisition purchase price consideration.

As
discussed in Note 13, in conjunction with the PIPE Financing on March 7, 2024, 1,079,136 warrants were issued with an exercise price of
$1.55 and a contractual term of 5 years. The relative fair value of the warrants of $1.1 million was estimated using the Black-Scholes
option pricing model with the following assumptions: share price of $1.56, expected dividend yield of 0%, expected volatility rate of
120.00%, based on the historical volatility of comparable companies, a risk free rate of 3.36% and an expected life of 5 years. The warrants
have an exercise price in USD and are equity-classified.

    F-42

The
following is a summary of equity-classified warrants outstanding as of December 31, 2024 and 2023, and changes during the periods then
ended:

 Schedule of warrants outstanding

    Weighted-average 

    Number of  
    exercise price 

    warrants  
    (CAD) 
  
    Outstanding, December 31, 2022 
     927,228  
     23.51 
  
    Reclassify GSQ Esports Inc. warrants to warrant liability 
     (927,228) 
     (23.51)
  
    Outstanding, December 31, 2023 
     -  
    $- 

    Weighted-average 

    Number of  
    exercise price 

    warrants  
    (USD) 
  
    Outstanding, December 31, 2022 
     -  
    $- 
  
    Acquisition of Engine 
     877,891  
     60.00 
  
    Outstanding, December 31, 2023 
     877,891  
    $60.00 
  
    Warrants expired 
     (877,891) 
     60.00 
  
    PIPE Financing