Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 75

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 75
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2024, a working capital deficiency
of $18.3 million) which is comprised of current assets less current liabilities.

These
conditions indicate the existence of a material uncertainty that raises substantial doubt about the Company’s ability to continue
as a going concern and, therefore, the Company may be unable to realize its assets and discharge its liabilities in the normal course
of business.

    6

2.
Significant accounting policies

(a)
Basis of presentation

The
accompanying unaudited condensed consolidated financial statements have been prepared following generally accepted accounting principles
in the United States of America (“GAAP”) for interim financial reporting and the rules and regulations of the SEC for interim
reporting. Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and footnotes
required by GAAP for audited financial statements. The balance sheet as of December 31, 2024 was derived from the Company’s audited
consolidated financial statements but does not include all disclosures required by GAAP for annual financial statements. In management’s
opinion, the interim information contains all adjustments, which include normal recurring adjustments necessary for a fair statement
of the results for the interim periods. The footnote disclosures related to the interim financial information contained herein are also
unaudited. Such financial information should be read in conjunction with the consolidated financial statements and related notes thereto
for the year ended December 31, 2024, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024,
which was filed with the SEC on April 15, 2025, and amended on April 30, 2025 (the “2024 Form 10-K”).

(b)
Principles of consolidation

The
unaudited condensed consolidated financial statements include the accounts of the Company, all wholly owned and majority-owned subsidiaries
in which the Company has a controlling voting interest and, when applicable, variable interest entities in which the Company has a controlling
financial interest or is the primary beneficiary. Investments in affiliates where the Company does not exert a controlling financial
interest are not consolidated.

All
significant intercompany transactions and balances have been eliminated upon consolidation.

The
Company’s material subsidiaries as of March 31, 2025, are as follows:

Schedule of Material Subsidiaries 

    Name of Subsidiary 
    Country of
    Incorporation 
    Ownership
    Percentage  
    Functional
    Currency