Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 303

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 303
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require us to change the manner in which we conduct our business.

We
monitor our assets and income for compliance under the 1940 Act and seek to conduct our business activities in a manner such that we
do not fall within its definitions of “investment company” or that we qualify under one of the exemptions or exclusions provided
by the 1940 Act and corresponding SEC regulations. If Ethereum is determined to constitute a security for purposes of the federal securities
laws, we would take steps to reduce the percentage of Ethereum that constitute investment assets under the 1940 Act. These steps may
include, among others, selling Ethereum that we might otherwise hold for the long term and deploying our cash in non-investment assets,
and we may be forced to sell our Ethereum at unattractive prices. We may also seek to acquire additional non-investment assets to maintain
compliance with the 1940 Act, and we may need to incur debt, issue additional equity or enter into other financing arrangements that
are not otherwise attractive to our business. Any of these actions could have a material adverse effect on our results of operations
and financial condition. Moreover, we can make no assurance that we would successfully be able to take the necessary steps to avoid being
deemed to be an investment company in accordance with the safe harbor. If we were unsuccessful, and if Ethereum and/or indirect ownership
interests in ETH funds which hold Ethereum is determined to constitute a security for purposes of the federal securities laws, then we
would have to register as an investment company, and the additional regulatory restrictions imposed by 1940 Act could adversely affect
the market price of Ethereum and in turn adversely affect the market price of our common stock.

We
may be subject to regulatory developments related to crypto assets and crypto asset markets, which could adversely affect our business,
financial condition, and results of operations.

As
Ethereum and other digital assets are relatively novel and the application of state and federal securities laws and other laws and regulations
to digital assets is unclear in certain respects, it is possible that regulators in the United States or foreign countries may interpret
or apply existing laws and regulations in a manner that adversely affects the price of Ethereum. The U.S. federal government, states,
regulatory agencies, and foreign countries may also enact new laws and regulations, or pursue regulatory, legislative, enforcement or
judicial actions, that could materially impact the price of Ethereum or the ability of individuals or institutions such as us to own
or transfer Ethereum.

Changes
in