Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 129

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 129
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) 
     - 
  
    Total intangible assets 
    $24,528,821  
    $(4,601,508) 
    $(4,661,577) 
    $15,265,736 

The
Company recognized amortization expense for intangible assets of $1.0 million and $2.2 million for the nine months ended September 30,
2025 and 2024, respectively; and $0.3 million and $0.6 million for the three months ended September 30, 2025 and 2024, respectively.

Amortization
expense for definite lived intangible assets is expected to be as follows over the next five years, and thereafter:

Schedule of amortization expense for intangible assets 

    2025 
    $392,371 
  
    2026 
     1,388,366 
  
    2027 
     1,031,717 
  
    2028 
     914,800 
  
    2029 
     914,800 
  
    Thereafter 
     2,036,750 
  
    Total estimated amortization expense 
    $6,678,804 

In
connection with the decision in the third quarter of 2025 to discontinue the operations of Frankly (Note 19), the remaining value of
goodwill and intangible assets of Frankly were impaired. Goodwill and intangible assets impairment charges were $5.1 million and $3.4
million, respectively, and were recorded within Net income (loss) from discontinued operations on the consolidated statements of operations
and comprehensive loss.

(c)
Intangible assets, indefinite lived

On
July 24, 2025, the Company entered into a subscription agreement, pursuant to which the subscriber purchased from the Company 3,433.33
shares of Series A-1 Convertible Preferred Stock of the Company, par value $0.0001 per share (Note 11), in consideration for Crypto Punk
5577 non-fungible token (“NFT”), which was deemed to have a fair market value of $5.15 million.

Regarding
the NFT, CryptoPunks launched as a fixed set of 10,000 items in mid-2017. Rare and highly sought-after “Cowboy Ape” CryptoPunk
NFT from Robert Leshner, founder of the DeFi protocol Compound and CEO of Superstate. Valued for its