Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 100

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 100
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million in net income (loss) from discontinued operations in the consolidated statements of operations and comprehensive loss after
offsetting the consideration received, conversion of $10
million Gigamoon convertible debenture discussed above (see Note 8), with the carrying value of the disposed assets and liabilities.
The fair value of consideration received was concluded to be $10 million, the principal value of convertible debt being converted by
Gigamoon. Faze Media assets and liabilities disposed had a net carrying value of $7.0
million and consist of $0.6
million of cash, $2.9
million of accounts receivable, $0.2
million of prepaid expenses and other current assets, $1.6
million of amounts due from GameSquare, $0.1
million of property and equipment, $0.7
million of right-of-use assets, $9.6
million of intangible assets and $7.1
million of goodwill, partially offset by $0.2
million of accounts payable, $1.7
million of accrued liabilities, $0.5
million of deferred revenue, $0.7
million of lease liabilities and $12.9
million in non-controlling interests in Faze Media.

5.
Goodwill and intangible assets

(a)
Goodwill

The
following table presents the changes in the carrying amount of goodwill:

Schedule of goodwill 

    Balance, December 31, 2023 
    $16,303,989 
  
    Acquisition of FaZe 
     7,147,428 
  
    Disposal of Frankly Media assets 
     (3,315,139)
  
    Impairment of Stream Hatchet 
     (4,945,299)
  
    Impairment of Sideqik 
     (2,486,000)
  
    Balance, December 31, 2024 
    $12,704,979 
  
    Disposal of FaZe Media 
     (7,147,428)
  
    Balance, June 30, 2025 
    $5,557,551 

Goodwill
resulting from the acquisition of FaZe was allocated to the Teams operating and reportable segment.

There
were no impairment charges related to goodwill incurred during the three and six months ended June 30, 2025 and 2024, respectively.

    11

(b)
Intangible assets

Intangible
assets consist of