Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 115

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 115
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     (333,477) 
     106,601 
  
    Gain on disposition of
    subsidiary 
     298,382  
     (3,009,891)
  
    Loss from discontinued
    operations 
     24,480  
     1,463,074 
  
    Net loss attributable to
    non-controlling interest 
     2,018,132  
     - 
  
    Net
    loss attributable to non-controlling interest (adjustment for NCI share of add backs to Adjusted EBITDA) 
     (164,561) 
     - 
  
    Adjusted EBITDA 
    $(3,408,111) 
    $(4,130,321)

Liquidity
and Capital Resources

Overview

The
financial statements have been prepared on a going-concern basis, which assumes the realization of assets and liquidation of liabilities
in the normal course of business. Continuing operations, as intended, are dependent on management’s ability to raise required funding
through future equity issuances, its ability to acquire business interests and develop profitable operations or a combination thereof,
which is not assured, given today’s volatile and uncertain financial markets. We may revise programs depending on our working capital
position.

Our
approach to managing liquidity risk is to ensure that we will have sufficient liquidity to meet liabilities when due. Our liquidity and
operating results may be adversely affected if our access to the capital market is hindered, whether as a result of a downturn in stock
market conditions generally or as a result of conditions specific to the Company.

We
regularly evaluate our cash position to ensure preservation and security of capital as well as maintenance of liquidity. As we do not
presently generate sufficient revenue to cover costs, managing liquidity risk is dependent upon the ability to reduce monthly operating
cash outflow and secure additional financing. The recoverability of the carrying value of the assets and our continued existence is dependent
upon our ability to raise financing in the near term, and ultimately the achievement of profitable operations.

As
of March 31, 2025, cash and restricted cash totaled $5.8 million, compared to $13.1 million as of December 31, 2024.

29

While
management has been historically successful in raising the necessary capital, it cannot provide assurance that it will be able to execute
its business strategy or be successful in future financing activities.

Our
ability to maintain sufficient liquidity could