Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 93

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 93
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 of operating cash flows; and (vi) testing
for impairment of long-lived assets and goodwill. Actual results may differ from the estimates and assumptions used in the consolidated
financial statements.

    7

(d)
Concentration of credit risk

The
Company places its cash, which may at times be in excess of United States’ Federal Deposit Insurance Corporation insurance limits,
with high credit quality financial institutions and attempts to limit the amount of credit exposure with any one institution.

The
Company had one customer whose revenue accounted for approximately 50% and 65% of total revenue for the six months ended June 30, 2025
and 2024, respectively.

One
customer individually accounted for more than 10%
of the Company’s accounts receivable as of June 30, 2025, and no customers accounted for more than 10% of the Company’s
accounts receivable as of December 31, 2024.

(e)
Segment reporting

In
accordance with the ASC 280, Segment Reporting, the Company’s Chief Operating Decision Maker (“CODM”) has been
identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance
for the entire Company. There were no significant changes to the Company’s segment reporting disclosures as a result of adopting
ASU No. 2023-07.

The
CODM uses gross profit, as reviewed at periodic business review meetings, as the key measure of the Company’s results as it reflects
the Company’s underlying performance for the period under evaluation to determine resource allocation. As of June 30, 2025, the
Company is organized into the three operating segments, which also represent its three reportable segments: Teams, Agency and Software-as-service
(SaaS) + Advertising.

ASC
280 establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products
and services, major customers, and the countries in which the entity holds material assets and reports revenue.

3.
Recent accounting pronouncements

(a)
Adopted

In
December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09
requires that public business entities must annually (1) disclose specific categories in the rate reconciliation and (2) provide
additional information for reconc