Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 174

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 174
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VO, any direct costs and fees related
to the convertible debt is recognized in operating expense in the consolidated statements of operations and comprehensive loss as incurred
and not deferred. Changes in fair value of the convertible debt is recognized as a separate line in the consolidated statements of operations
and comprehensive loss.

Contingencies

The
Company estimates loss contingencies in accordance with ASC 450-20, Loss Contingencies, which states that a loss contingency shall
be accrued by a charge to income if both of the following conditions are met: (i) information available before the consolidated financial
statements are issued or are available to be issued indicates that it is probable that a liability had been incurred at the date of the
consolidated financial statements and (ii) the amount of loss can be reasonably estimated. Management regularly evaluates current information
available to determine whether such accruals should be adjusted and whether new accruals are required.

Recent
Accounting Pronouncements

See
Note 3 to our consolidated financial statements included in this Annual Report on Form 10-K for a description of recently adopted accounting
pronouncements and recently issued accounting pronouncements not yet adopted, the timing of their adoptions and our assessment, to the
extent we have made one, of their potential impact on our financial condition and results of operations.

ITEM
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We
are exposed to a variety of market and other risks, including the effects of changes in interest rates and inflation, as well as risks
to the availability of funding sources, and specific asset risks.

Market
risk represents the risk of loss that may impact our financial position, results of operations, or cash flows due to adverse changes
in financial market prices, including interest rate risk, foreign currency exchange rate risk, and other relevant market or price risks.
We do not use derivative instruments to mitigate this risk.

Interest
rate risk

Interest
rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. We are exposed to fair value risk with respect to debt which bears interest at fixed rates.

Foreign
currency risk

Our
exposure to the risk of changes in foreign exchange rates relates primarily to fluctuations of financial instruments related to cash,
accounts and other receivables, and accounts payable denominated in Euros, UK pound sterling as well as debt denominated in Canadian
dollars.

29

Item
8.