Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 127

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 127
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 ended September 30, 2025, the Company contributed an aggregate of 15,630 ETH, with a fair value of $55.3 million at the
contribution dates, to the Dialectic Moonphase Feeder Fund LP (“Dialectic”) in exchange for limited partnership units of
Dialectic. The Company may redeem its interest with 30 days’ notice, subject to standard fund provisions. Dialectic is a Cayman
Islands limited partnership focused on decentralized finance (“DeFi”) yield strategies. The ETH was derecognized at fair
value under ASC 350-60 upon transfer and no gain or loss was recognized.

The
investment in Dialectic is subject to the provisions of ASC 321 and, because the investment in Dialectic does not have a readily determinable
fair value, the Company elected to use the NAV practical expedient and, therefore, the investment is not included in the fair value hierarchy.

The
investment generated yield in August and September 2025 of $588,242 which is included in revenue in the condensed consolidated statements
of operations. Further, unrealized gains on changes in market value of ETH of $9.6 million were recognized during both the three and
nine months ended September 30, 2025, and are included in Other income (expense), net in the condensed consolidated statements of operations.

7.
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)
  
    Acquisition of Click 
     3,805,052 
  
    Impairment of Frankly 
     (5,141,849)
  
    Balance, September 30, 2025 
    $4,220,754 

In
connection with the decision in the third quarter of 2025 to