Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 94

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 94
---
iling items that meet a quantitative threshold (if the effect of those reconciling items is equal
to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax
rate). This ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The ASU is to be
applied prospectively. Retroactive application is permitted. The adoption of this ASU on January 1, 2025 did not have a significant
impact on the Company’s consolidated financial statements.

In
November 2023, the FASB issued ASU No 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures
(“ASU 2023-07”). ASU 2023-07 is intended to improve reportable segment disclosure requirements primarily through
enhanced disclosures about significant segment expenses. The provisions of ASU 2023-07 are effective for fiscal years beginning
after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The adoption of this ASU on
December 31, 2024 did not have a significant impact on the Company’s consolidated financial statements.

4.
Acquisitions and divestitures

(a)
FaZe Merger

On
March 7, 2024, the Company completed its acquisition of FaZe (the Merger). Prior to the Merger, the Company created GameSquare Merger
Sub I, Inc. (“Merger Sub”) to effect the Merger. As a result of the Merger, Merger Sub merged with FaZe, with FaZe continuing
as the surviving corporation and as a wholly-owned subsidiary of the Company.

    8

The
Company acquired all issued and outstanding FaZe common shares in exchange for 0.13091 of a GameSquare common share for each FaZe common
share (the “Exchange Ratio”). All outstanding FaZe equity awards and warrants to purchase shares of FaZe common stock were
acquired and exchanged for GameSquare equity awards and warrants to purchase GameSquare common stock on substantially the same terms,
with exercise prices, where applicable, and shares issuable adjusted for the Exchange Ratio.

The
Merger was accounted for using the acquisition method of accounting under ASC 805, Business Combinations, which requires that
the Company recognize the identifiable assets acquired and the liabilities assumed at their fair values on the date of acquisition