Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 199

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 199
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 the foregoing efforts will, when implemented, strengthen our DC&P
and ICFR. Management will take additional remedial actions as necessary as they continue to evaluate and work to improve the Company’s
control environment.

Changes
in Internal Control Over Financial Reporting

There
were no changes in the Company’s internal control over financial reporting that occurred during the nine months ended
September 30, 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal
control over financial reporting.

47

PART
II - OTHER INFORMATION

ITEM
1. LEGAL PROCEEDINGS

Allinsports
- A September 2021, decision issued by an arbitrator located in Alberta, Canada, directed the Company to issue 241,666 shares to Allinsports
in connection with a dispute whether certain closing conditions in the acquisition agreement for Allinsports had been met. The Company
recognized a liability for the arbitration ruling of $1.5 million, which represented the fair value of the common shares directed to
be delivered as of April 11, 2023. The liability is recorded as arbitration reserve on the Company’s consolidated balance sheets.
This liability will be adjusted to fair value at the end of each reporting period.

SPAC
Complaint – As previously disclosed, in June 2024 a complaint was filed in Delaware
Chancery Court by Nathan Carter (“Plaintiff” ), a purported stockholder of B. Riley Principal 150 Merger Corp. (“BRPM”), 
against several former directors of BRPM, Faze Holdings, Inc.’s predecessor, and several other BRPM affiliated entities, challenging
the disclosures made in connection with the July 2022 merger between BRPM and Faze Holdings, The Company is required to indemnify certain
of the defendants due to its subsequent acquisition of FaZe Holdings, Inc. As previously reported, the Company, the Plaintiff and
the defendants entered into a settlement agreement in February 2025 (the “Settlement Agreement”) pursuant to which the parties
agreed to tentative terms resolving the matter, subject to approval from the Court of Chancery. On September 22, 2025, the Court of Chancery
granted final approval of the Settlement Agreement, pursuant to which the Company and BRPM agreed to pay to Plaintiff a total of $3.25
million in cash, $2.15 million of which the Company had the option to in the form of shares of its Common Stock in lieu of