Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 926

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 926
---
 jointly controlled entities to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax
provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates
enacted or substantively enacted at the financial position reporting date applicable to the period of expected realization or settlement.

A
deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the
asset can be utilized.

Deferred
tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities
and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and
liabilities on a net basis.

27

Investments

Investments
in and advances to entities or joint ventures in which the Company has significant influence, but less than a controlling financial interest,
are accounted for using the equity method. Significant influence is generally presumed to exist when the Company owns an interest between
20% and 50% and exercises significant influence.

In
accordance with ASC 321 “Investments—Equity Securities” (“ASC 321”), equity securities which the
Company has no significant influence (generally less than a 20% ownership interest) with readily determinable fair values are accounted
for at fair value based on quoted market prices. Equity securities without readily determinable fair values are accounted for either
at fair value or using the measurement alternative which is at cost minus impairment, if any, plus or minus changes resulting from observable
price changes in orderly transactions for the identical or a similar investment of the same issuer. All gains and losses on investments
in equity securities are recognized in the consolidated statements of operations and comprehensive loss.

Equity
securities accounted for under the measurement alternative, the Company assesses the securities for impairment indicators, at least annually,
or more frequently if there are any indicators of impairment. If the assessment indicates that the fair value of the investment is less
than its carrying value, the investment is impaired and an impairment charge equal to the excess of the carrying value over the related
fair value of the investment will be recorded.

Business
combinations

The
results of businesses acquired in a business combination are included in the Company’s consolidated financial statements from the
date of the acquisition. The Company uses the acquisition method of accounting and allocates the purchase price to the identifiable assets
and liabilities of the relevant acquired business at