Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 44

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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     Amount 
  
    Balance, December 31, 2024 
    $14,314 
  
    Change in fair value 
     (7,275)
  
    Foreign exchange 
     6 
  
    Balance, September 30, 2025 
    $7,045 

The
following assumptions were used to determine the fair value of the warrant liability using the Black-Scholes option pricing model:

Schedule of assumptions fair value of warrant liability 

    September
    30, 2025

    December
    31, 2024

    Share
    price

    CAD$0.94

    CAD$1.19

    Term,
    in years

    2.00

    2.75

    Exercise
    price

    CAD$9.68

    CAD$9.68

    Expected
    volatility

    100.00
    %

    100.00
    %
  
    Risk-free
    interest rate

    2.66
    %

    2.85
    %
  
    Expected
    dividend yield

    0
    %

    0
    %

    22

Volatility
was estimated by using the average historical volatility of the Company. The expected life in years represents the period of time that
warrants issued are expected to be outstanding. The risk-free rate is based on government treasury bond rates issued with a remaining
term approximately equal to the expected life of the warrants.

The
Company had 123,930 liability-classified warrants with a weighted average exercise price of CAD$9.68 outstanding as of September 30,
2025 and December 31, 2024. There we no changes during the nine months ended September 30, 2025.

(b)
Equity-classified warrants

As
discussed in Note 11, in connection with the registered offerings that closed on July 9, 2025 and July 18, 2025, the Company issued underwriter
warrants as additional consideration to the underwriter.

On
July 9, 2025, 968,421 warrants were issued to the underwriter, representing 10% of the common shares issued in the offering. The warrants
have a strike price of $1.14 per warrant and are exercisable for a period of five years. The total fair value of the underwriter warrants
issued was $1.7 million, and included