Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 38

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 38
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 provide
assurance that it will be able to execute its business strategy or be successful in future financing activities.

Our
ability to maintain sufficient liquidity could be affected by various risks and uncertainties including, but not limited to, our ability
to raise additional funds through financing, those related to consumer demand and acceptance of our products and services, our ability
to collect payments as they become due, achieving our internal forecasts and objectives, the economic conditions of the United States
and abroad.

Sources
and Uses of Cash

Since inception, we have financed our operations primarily
by issuing equity and debt. As of December 31, 2024, our principal sources of liquidity were our cash in the amount of $12.1 million,
available borrowings under our line of credit as well as new debt and/or equity issuances.

As discussed in recent developments above, we obtained
gross proceeds of $10.0 million from the Kalish CD issued on December 15, 2024. Further, as discussed above, the Kalish CD was exchanged
on April 1, 2025 for the Company’s remaining preferred shares held in Faze Media Inc.

Operating
Activities

The Company used cash of $30.6 million in operating
activities during the year ended December 31, 2024, compared with $16.1 million in the comparative period. The use of funds in operating
activities is described in the Results of Operations section above.

Investing Activities

Net cash provided by investing activities was $2.7
million for the year ended December 31, 2024, consisting primarily of $2.4 million cash acquired in the FaZe Clan acquisition.

Net cash provided by investing activities was $14.1
million for the year ended December 31, 2023, consisting primarily of $11.3 million in cash acquired in the Engine acquisition and $2.75
million cash from the disposal of Frankly Media radio assets.

Financing Activities

Net cash provided by financing activities was $38.0
million for the year ended December 31, 2024, which was primarily due to PIPE Financing on March 7, 2024 of $10 million, cash investments
by non-controlling interests of Faze Media, Inc. of $20.5 million and net cash inflows from issuances (less repayments) of convertible
debt of $8.5 million.

Net cash provided by financing activities was $4.0
million for the year ended December