Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 118

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 118
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 Pty Ltd (“Click”), an Australian proprietary limited company, subject to the terms and conditions in
the Purchase Agreement. The acquisition of Click closed on September 11, 2025.

Under
the terms of the purchase agreement, the Company paid a base purchase price of $4,500,000
subject to customary adjustments for cash, net working capital, indebtedness and transaction expenses (collectively, “Cash at
closing”). The sellers will also receive, subject to the terms and conditions described in the Purchase Agreement: (i)
a deferred cash payment (“Deferred purchase consideration”) of $4,000,000
within sixty (60) days following December 31, 2025; and (ii) up to an aggregate of $3,000,000
in cash earn-out payments (“Contingent purchase consideration”) based on the post-closing performance of the Company and
its wholly owned subsidiary, Click Media & Management LLC, a Delaware limited liability company (“Click Media”).
Specifically, (a) up to $1,500,000 may be payable based on Click’s EBITDA for the 12-month period beginning January 1, 2026,
and (b) up to an additional $1,500,000 may be payable based Click’s EBITDA for the 12-month period beginning January 1,
2027.

The
acquisition of Click was accounted for using the acquisition method of accounting under ASC 805, Business Combinations, which
requires that the Company recognize the identifiable assets acquired and the liabilities assumed at their fair values on the date of
acquisition.

    9

The
following preliminary table summarizes the consideration for the acquisition:

Schedule of purchase consideration 

    Purchase consideration 
    Amount 
  
    Cash at closing 
    $5,274,237 
  
    Deferred purchase consideration 
     3,996,548 
  
    Contingent purchase consideration, non-current 
     807,000 
  
    Total purchase price 
    $10,077,785 

The
preliminary purchase price allocation is as follows:

Schedule of preliminary purchase
price allocation 

    Purchase price allocation 
    Amount 
  
    Cash 
    $701,306 
  
    Accounts receivable, net 
     2,363,740 
  
    Government remittances 
     100,763 
  
    Prepaid expenses and other current assets 
     125,536 
  
    Investment 
     133,133