Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 119

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 119
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    Property and equipment 
     40,032 
  
    Goodwill 
     3,805,052 
  
    Intangible assets 
     5,100,000 
  
    Total assets acquired 
     12,369,562 

    Accounts payable 
     1,132,919 
  
    Accrued liabilities 
     1,158,858 
  
    Total liabilities assumed 
     2,291,777 
  
    Net assets acquired 
    $10,077,785 

Measurement
period adjustments

Where
provisional values are used in accounting for a business combination, they may be adjusted in subsequent periods, not to exceed twelve
months. The primary areas that are subject to change relate to the fair value of the purchase consideration transferred and purchase
price allocations related to the fair values of certain tangible assets, the valuation of intangible assets acquired, and residual goodwill.
The Company expects to continue to obtain information to assist in determining the fair value of the net assets acquired during the measurement
periods.

Goodwill

The
difference between the estimated acquisition date fair value of the consideration transferred and the estimated values assigned to the
assets acquired and liabilities assumed represents goodwill of $3.8 million.

The
goodwill recorded represents the following:

    ●
    Cost
    savings and operating synergies expected to result from combining the operations of Click with those of the Company.

    ●
    Intangible
    assets that do not qualify for separate recognition such as the assembled workforce.

Goodwill
arising from the acquisition is expected to be deductible for tax purposes.

(b)
FaZe Merger

On
March 7, 2024, the Company completed its acquisition of FaZe (the Merger). Prior to the Merger, the Company created GameSquare Merger
Sub I, Inc. (“Merger Sub”) to effect the Merger. As a result of the Merger, Merger Sub merged with FaZe, with FaZe continuing
as the surviving corporation and as a wholly-owned subsidiary of the Company.

    10

The
Company acquired all issued and outstanding FaZe common shares in exchange for 0.13091 of a GameSquare common share for each FaZe common
share (the “Exchange Ratio”). All outstanding FaZe equity awards and warrants to purchase shares of FaZe common stock were
acquired and exchanged for GameSquare equity awards and warrants to purchase GameSquare common stock on substantially the same terms,
with exercise prices