Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 950

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 950
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 their migration of the Company’s solutions and there is no continuing service obligation to the customer.

The
Company charges its customers for the optional use of its content delivery network to stream and store videos. The revenue is recognized
as earned based on the actual usage because it has stand-alone value and delivery is in control of the customer. The Company also charges
its customers for the use of its ad serving platform to serve ads under local advertising campaigns. The Company reports revenue as earned
based on the actual usage.

    F-14

Advertising

Under
national advertising agreements with advertisers, the Company sources, creates, and places advertising campaigns that run across the
Company’s network of publisher sites. National advertising revenue, net of third-party costs, is shared with publishers based on
their respective contractual agreements. The Company invoices national advertising amounts due from advertisers and remits payments to
publishers for their share. Depending on the agreement with the publisher, the obligation to remit payment to the publisher is based
on either billing to the advertiser or the collection of cash from the advertiser.

National
advertising revenue is recognized in the period during which the ad impressions are delivered. The Company reports revenue earned through
national advertising agreements either on a net or gross basis. The Company applies judgement in recognizing revenue earned through national
advertising agreements on a net or gross basis based on the criteria as disclosed below.

Under
national advertising agreements wherein the Company does not bear inventory risk and only has credit risk on its portion of the revenue,
national advertising revenues are accounted for on a net basis and the publisher is identified as the customer.

In
select national advertising agreements with its publishers, the Company takes on inventory risk and additional credit risk. Under these
agreements, the Company either a) provides the publisher with a guaranteed minimum gross selling price per advertising unit delivered,
wherein the greater of the actual selling price or guaranteed minimum selling price is used in determining the publisher’s share
or b) provides the publisher with a fixed rate per advertising unit delivered, wherein the publisher is paid the fixed rate per advertising
unit delivered irrespective of the actual selling price. Under these national advertising agreements, national advertising revenues are
accounted for on a gross basis with the advertiser identified as the customer and the publisher identified as a supplier, with amounts
billed to the advertiser reported as revenue and amounts due to the publisher reported as a revenue sharing expense, within expenses.

Also
included in advertising revenue is advertising revenue generated by the Company’s various owned and operated properties.

The