Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 1199

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 1199
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 the utilization of net operating loss carryforwards in the event of a change in
ownership of the Company, as defined by Internal Revenue Code Section 382 (Section 382). As of December 31, 2024, the Company has not
performed a formal Section 382 study; however, the Company has reviewed its temporary taxable differences in conjunction with its temporary
deductible differences as a measure against its definite lived net operating losses and anticipates any impact to be mitigated with additional
net operating losses from temporary deductible differences. The Company has net operating loss carryforwards for federal and state income
tax purposes of approximately $325 million and $230 million, respectively, as of December 31, 2024. Most of the federal net operating
loss carryforwards will carryforward indefinitely. Some of the state net operating loss carryforwards, if not utilized, will expire beginning
in 2030.

    F-38

13.
Shareholders’ equity

(a)
Description of the Company’s securities

The
Company is authorized to issue an unlimited number of common shares, with no par value. Holders
of common shares are entitled to one vote in respect of each common share held at shareholder meetings of the Company.

(b)
Activity for the periods presented

On
March 7, 2024, 10,132,884 common shares of the Company were issued for the completion of the Merger (see Note 4).

In
conjunction with the Merger, on March 7, 2024, the Company completed a private placement in public equity financing (the “PIPE
Financing”) with certain investors in which the Company offered 7,194,244 units at a purchase price of $1.39 per unit for aggregate
gross proceeds of $10.0 million. Each unit consisted of one share of the Company’s common stock and a warrant to purchase 0.15
shares of the Company’s common stock. As a result, the Company issued an aggregate of 7,194,224 common shares of the Company and
warrants to purchase up to 1,079,136 shares of the Company pursuant to the PIPE Financing. Each warrant has an exercise price of $1.55
per share and expire on March 7, 2029 (see Note 16).

On
August 26, 2024, 103,594 common shares were issued in connection with conversion of $100 thousand in principal under the Yorkville CD
with