Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 146

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 146
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 have made the required settlement payment amounts in cash in full. As a result the litigation has been resolved.

Alta
Partners v. FaZe Holdings, Inc. On April 23, 2025, Alta Partners, LLC (“Alta”) filed a complaint against FaZe Holdings, Inc.
and GameSquare Holdings, Inc., in the United States District Court for the Southern District of New York, alleging that in 2022, FaZe
Holdings breached a warrant agreement between FaZe Holdings and Alta. On August 11, 2025, the Company entered into a Settlement and Release
Agreement with Alta Partners, LLC, pursuant to which the Company agreed to issue to Alta $150,000 of the Company’s restricted Common
Stock (“Settlement Shares”). In the event that the collective value of the Settlement Shares drops below $150,000 on the
six-month anniversary date following issuance of the Settlement Shares, or the next business day if the six-month anniversary date falls
on a weekend or holiday (the collective value to be computed based on the Nasdaq closing price of the Company’s common stock on
that six-month anniversary date, or the next business day if the six-month anniversary date falls on a weekend or holiday), then within
three business days of that date, the Company shall pay the difference between the collective value and $150,000 to Alta in cash (the
“True-Up Payment”). Upon the Company’s delivery of the Settlement Shares and True Up Payment, if applicable, the public
warrants that are owned and/or beneficially held by Alta at that time shall be cancelled immediately and Alta shall have no ownership,
right, claim, interest or benefit in such public warrants. Moreover, within three business days of Alta’s receipt of the Settlement
Shares, Alta shall file the Stipulation of Voluntary Dismissal with Prejudice, dismissing all claims asserted in the action against the
Company with prejudice.

The
outcomes of pending litigations in which the Company is involved are necessarily uncertain as are the Company’s expenses in prosecuting
and defending these actions. From time to time the Company may modify litigation strategy and/or the terms on which it retains counsel
and other professionals in connection with such actions, which may affect the outcomes of and/or the expenses incurred in connection
with such actions.

The
Company is subject to various other claims, lawsuits and other complaints arising in the ordinary course of business. The Company records
provisions for losses when claims become probable, and the