Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 115

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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 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 no customers whose revenue accounted for more than 10% of total revenue for the nine months ended September 30, 2025 and
2024, respectively.

No
customers individually accounted for more than 10% of the Company’s accounts receivable as of September 30, 2025 and December 31,
2024.

(e)
Segment reporting

In
accordance with the ASC 280, Segment Reporting, the Company’s Chief Operating Decision Maker (“CODM”) has been
identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance
for the entire Company. There were no significant changes to the Company’s segment reporting disclosures as a result of adopting
ASU No. 2023-07.

The
CODM uses gross profit, as reviewed at periodic business review meetings, as the key measure of the Company’s results as it reflects
the Company’s underlying performance for the period under evaluation to determine resource allocation. As of September 30, 2025,
the Company is organized into the four operating segments, which also represent its four reportable segments: Owned
and Operated IP, Agency, SaaS and managed services and Yield.

ASC
280 establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products
and services, major customers, and the countries in which the entity holds material assets and reports revenue.

(f)
Digital assets

Crypto
assets within the scope of ASC 350-60 are measured at fair value each reporting period, with changes in fair value recognized in the
condensed consolidated statements of operations. Fair value is determined using Level 1 inputs from principal market