Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 76

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 76
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    Frankly Media LLC 
    USA 
     100.00% 
    US Dollar
  
    Stream Hatchet S.L. 
    Spain 
     100.00% 
    Euro
  
    Code Red Esports Ltd. 
    United Kingdom 
     100.00% 
    UK Pound
  
    GameSquare Esports (USA) Inc. (dba as Fourth
    Frame Studios) 
    USA 
     100.00% 
    US Dollar
  
    GCN Inc. 
    USA 
     100.00% 
    US Dollar
  
    Faze Clan Inc. 
    USA 
     100.00% 
    US Dollar
  
    Faze Media Inc. 
    USA 
     25.50% 
    US Dollar
  
    Swingman LLC (dba as Zoned) 
    USA 
     100.00% 
    US Dollar
  
    Mission Supply LLC 
    USA 
     100.00% 
    US Dollar
  
    SideQik, Inc. 
    USA 
     100.00% 
    US Dollar

(c)
Use of estimates

The
preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect
the reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses
during the reporting period. Management evaluates these estimates and judgments on an ongoing basis and bases its estimates on historical
experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are
reasonable under the circumstances. Significant estimates have been used by management in conjunction with the following: (i) credit losses on promissory notes receivable; (ii) valuation of convertible debt; (iii) contingent liabilities; (iv) share-based compensation; (v) assumptions
used in business combinations, primarily related to management forecasting of operating cash flows; and (vi) testing for impairment of long-lived assets and goodwill. Actual results may differ from the
estimates and assumptions used in the consolidated financial statements.

    7

(d)
Concentration of credit risk

The
Company places its cash, which may at times be in excess of United States’ Federal Deposit Insurance Corporation insurance limits,
with high credit quality financial institutions and attempts to limit the amount of credit exposure with any one institution.

The
Company had one customer whose revenue accounted for approximately 34% and 57% of total revenue for the three months ended March 31,
202