Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 195

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 195
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Crypto assets within the scope of ASC 350-60 are measured
at fair value each reporting period, with changes in fair value recognized in the condensed consolidated statements of operations. Fair
value is determined using Level 1 inputs from principal market cryptocurrency exchanges or widely recognized pricing indices. These assets
are presented separately on the condensed consolidated balance sheets. Upon sale or transfer, crypto assets are derecognized at fair value.

Digital assets outside the scope of ASC 350-60, such as non-fungible tokens (“NFTs”), are accounted for
as indefinite-lived intangible assets under ASC 350-30.

Business
combinations

The
results of businesses acquired in a business combination are included in the Company’s consolidated financial statements from the
date of the acquisition. The Company uses the acquisition method of accounting and allocates the purchase price to the identifiable assets
and liabilities of the relevant acquired business at their acquisition date fair values. Any excess consideration over the fair value
of assets acquired and liabilities assumed is recognized as goodwill. The allocation of the purchase price in a business combination
requires the Company to perform valuations with significant judgment and estimates, including the selection of valuation methodologies,
estimates of future revenue, costs and cash flows, discount rates and selection of comparable companies. The Company engages the assistance
of valuation specialists in concluding on fair value measurements in connection with determining fair values of assets acquired and liabilities
assumed in a business combination. As a result, during the measurement period, which may be up to one year from the acquisition date,
the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion
of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any
subsequent adjustments are recorded to the consolidated statements of operations. Transaction costs associated with business combinations
are expensed as incurred and are included in selling, general and administrative expense in the consolidated statements of operations.

Impairment
of long-lived assets and goodwill

Long-lived
assets consist of property and equipment, right-of-use assets and intangible assets. The Company assesses for impairment of asset groups,
including intangible assets, at least annually, or more frequently if there are any indicators for impairment.

Goodwill
and indefinite life intangible assets are tested for impairment annually or when there is an indication that the asset may be impaired.

When
a triggering event that occurred during the reporting period is identified, or when the annual impairment test is required,