Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 143

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 143
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was estimated by using the average historical volatility of the Company. The expected life in years represents the period of time that
warrants issued are expected to be outstanding. The risk-free rate is based on government treasury bond rates issued with a remaining
term approximately equal to the expected life of the warrants.

The
Company had 123,930 liability-classified warrants with a weighted average exercise price of CAD$9.68 outstanding as of September 30,
2025 and December 31, 2024. There we no changes during the nine months ended September 30, 2025.

(b)
Equity-classified warrants

As
discussed in Note 11, in connection with the registered offerings that closed on July 9, 2025 and July 18, 2025, the Company issued underwriter
warrants as additional consideration to the underwriter.

On
July 9, 2025, 968,421 warrants were issued to the underwriter, representing 10% of the common shares issued in the offering. The warrants
have a strike price of $1.14 per warrant and are exercisable for a period of five years. The total fair value of the underwriter warrants
issued was $1.7 million, and included within additional paid-in capital on the condensed consolidated balance sheet.

On
July 18, 2025, 5,016,666 warrants were issued to the underwriter, representing 10% of the common shares issued in the offering. The warrants
have a strike price of $1.80 per warrant and are exercisable for a period of five years. The total fair value of the underwriter warrants
issued was $5.6 million, and included within additional paid-in capital on the condensed consolidated balance sheet.

On
July 1, 2025, 600,000 warrants were issued to Dialectic for services. The warrants have an exercise price of $1.00 and are exercisable
for a period of three years. The total fair value of the warrants issued was $0.3 million, and included within General and administrative
expense on the condensed consolidated statement of operations.

As
discussed in Note 4, in conjunction with the acquisition of FaZe, the Company issued 775,415 warrants with an acquisition fair value
of $26 thousand, included in the FaZe acquisition purchase price consideration.

As
discussed in Note 11, in conjunction with the PIPE Financing on March 7, 2024,