Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 1129

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 1129
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 However, if the collective deficiencies were deemed to create a material weakness, a material
misstatement to our consolidated financial statements might not be prevented or detected on a timely basis.

Management’s
Annual Report on Internal Control over Financial Reporting

Management
is responsible for designing, implementing and maintaining adequate internal control over financial reporting, as such term is defined
in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Internal controls, no matter how well designed, have inherent limitations. Therefore,
even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and
presentation. Further, because of changes in conditions, the effectiveness of internal control over financial reporting may vary over
time.

Under
the supervision and with the participation of our management, including our principal executive officers and principal financial officer,
we conducted an evaluation of the effectiveness of our internal controls over financial reporting as of December 31, 2024, based on the
criteria related to internal control over financial reporting described in “Internal Control – Integrated Framework (2013)”
issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on our evaluation, management concluded
that our internal control over financial reporting were not effective as of December 31, 2024, due to the material weaknesses described
above.

30

Management’s
Remediation Measures

To
address the deficiencies identified, management, with oversight of the Audit Committee, has implemented, or will implement, remediation
measures to further address the deficiencies in the design of its DC&P and ICFR. The Company intends to complete such remedial measures
by December 31, 2026. Management has also performed an initial risk assessment using a top-down, risk-based approach with respect to
the risks of material misstatement of the consolidated financial statements. In addition, compensating controls have been applied to
a number of areas where the risks of material misstatement are considered moderate to high. The Company is engaging outside resources
to strengthen the business process documentation and help with management’s self assessment and testing of internal controls. Although
the Company can give no assurance that these actions will remediate these deficiencies or that additional deficiencies or a material
weaknesses will not be identified in the future, management believes the foregoing efforts will, when implemented, strengthen our DC&P
and ICFR. Management will take additional remedial actions as necessary as they continue to evaluate and work to improve