Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 36

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 default or certain change of control events,
the Gigamoon CD can be converted into either (i) GameSquare common stock at a conversion price of $2.50 per common share or (ii) exchanged
for the 5,725,000 shares of Series A-1 Preferred Stock of Faze Media Inc. held by the Company.

Subsequently, on
April 2, 2025, GameSquare and Gigamoon entered into an exchange agreement, effective April 1, 2025, pursuant to which, the parties agreed
to accelerate the exercise date under the Gigamoon CD to April 1, 2025. As a result, on April 1, 2025, GameSquare transferred the 5,725,000
shares of Series A-1 Preferred Stock of Faze Media Inc. to Gigamoon (See Note 4).

Outstanding
as of September 30, 2025

(a)
Three Curve CD

On
September 1, 2022, Engine extended convertible debentures that were due to mature in October and November 2022 with an aggregate principal
amount of $1.3 million. Key terms include (a) a maturity date of August 31, 2025, (b) an interest rate of 7% per annum (interest to be
paid in full at maturity) and (c) a conversion price of $4.40 per share.

The
Three Curve CD matured during the quarter, and the balance due was reclassed into Accrued expenses and other current liabilities on the
condensed consolidated balance sheet. The total amount due was paid subsequent to quarter end by the Company.

The
change in fair values of the Company’s convertible debentures subject to recurring remeasurement at fair value were as follows:

Schedule of convertible debentures subject to recurring remeasurement at fair value 

    Three Curve CD  
    Yorkville CD  
    Gigamoon CD  
    Total 
  
    Balance, December 31, 2024 
    $1,629,448  
    $4,852,256  
    $9,908,784  
    $16,390,488 
  
    Interest expense 
     58,253  
     -  
     184,932  
     243,185 
  
    Interest payments 
     -  
     -  
     (217,808)