Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 84

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 84
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ies expected to result from combining the operations of Engine with those of the Company.

    ●
    Intangible
    assets that do not qualify for separate recognition such as the assembled workforce.

Goodwill
arising from the Arrangement is expected to be deductible for tax purposes.

Subscription
receipt financing

On
April 6, 2023, Engine closed a public offering of 7,673,000 subscription receipts at an issue price of $1.25 per subscription receipt,
including the partial exercise of an over-allotment option, for gross proceeds of $9.6 million, net of equity issuance costs of $0.2
million. Each subscription receipt entitled the holder to receive one share of the Company upon closing of the Arrangement. The proceeds
from the public offering are included in the opening balance sheet of Engine above.

    F-25

The
subscription receipts were consolidated into 1,918,250 subscription receipts as a result of a 4 to 1 reverse stock split of Engine’s
common stock immediately prior to the closing of the Arrangement. Upon closing of the Arrangement, the subscription receipts were automatically
exchanged on a one-to-one basis for 1,918,250 common shares of the Company. These common shares are included in the measurement of common
share purchase consideration in the Arrangement shown above.

Engine
pro-forma results of operations

The
following unaudited pro-forma consolidated results of operations for the years ended December 31, 2023 and 2022, respectively, have been
prepared as if the Arrangement had occurred on January 1, 2022. The below does not include any pro-forma adjustments other than adding
in the actual results of Engine from January 1, 2023 to April 11, 2023 for 2023 and the year ended November 30, 2022 for the 2022 year.
As Engine historical reported on an August 31 fiscal year end, calendar year 2022 actual results are not available:

 Schedule of business acquisition pro-forma

    2023  
    2022 

    Year ended December 31, 

    2023  
    2022 
  
    Revenue 
    $60,790,276  
    $68,019,706 
  
    Net income 
     (33,224,344) 
     (36,557,433)
  
    Net income attributable to GameSquare Holdings