Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 189

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 189
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 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 September 30, 2025, our principal sources of
liquidity were our cash, accounts receivable and digital assets in the amount of $6.0 million, $13.3 and $4.0 million, respectively. Although the Company has approximately $65 million of ETH value held within our investment in ETH fund, which can
redeemed and subsequently sold at our election (subject to the ETH fund’s redemption provisions), we currently intend to be long term holders of ETH.

Operating
Activities

Net
cash used in operating activities was $17.3 million during the nine months ended September 30, 2025, compared with $25.4 million
used in operating activities in the comparative prior year period. The use of funds in operating activities is described in the
Results of Operations section above.

Investing
Activities

Net
cash used in investing activities was $61.8 million for the nine months ended September 30, 2025 primarily due to $57.1 million of digital asset purchases and $4.6 being used in the acquisition of Click.

Net
cash provided by investing activities was $2.8 million for the nine months ended September 30, 2024.

Financing
Activities

Net
cash provided by financing activities was $74.0 million for the nine months ended September 30, 2025, which was primarily due to
$77.9 million raised from the July 2025 registered offerings, as discussed in the recent developments section. Net cash provided by
financing activities was $30.4 million for the nine months ended September 30, 2024, which was primarily due to the PIPE Financing
on March 7, 2024 of $9.9 million and the spinoff of FaZe Media on May 15, 2024 and minority interest investments into FaZe Media of
$20.5 million during the second and third quarter of 2024.

Commitments
and Contingencies

Management
commitments

The
Company is party to certain management contracts. These contracts require payments of approximately $0.6 million to be made upon the
occurrence of a change in control and termination without cause to certain officers of the Company. The Company is also committed to
payments upon termination without cause of approximately