Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 173

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 173
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 of capital as well as maintenance of liquidity. As we do not
presently generate sufficient revenue to cover costs, managing liquidity risk is dependent upon the ability to reduce monthly operating
cash outflow and secure additional financing. The recoverability of the carrying value of the assets and our continued existence is dependent
upon our ability to raise financing in the near term, and ultimately the achievement of profitable operations.

As
of March 31, 2025, cash and restricted cash totaled $5.8 million, compared to $13.1 million as of December 31, 2024.

29

While
management has been historically successful in raising the necessary capital, it cannot provide assurance that it will be able to execute
its business strategy or be successful in future financing activities.

Our
ability to maintain sufficient liquidity could be affected by various risks and uncertainties including, but not limited to, our ability
to raise additional funds through financing, those related to consumer demand and acceptance of our products and services, our ability
to collect payments as they become due, achieving our internal forecasts and objectives, the economic conditions of the United States
and abroad.

Sources
and Uses of Cash

Since
inception, we have financed our operations primarily by issuing equity and debt. As of March 31, 2025, our principal sources of liquidity
were our cash and accounts receivable in the amount of $4.7 million and $18.3 million, respectively, and available borrowings under our
line of credit as well as new debt and/or equity issuances.

As
discussed in recent developments above, we obtained gross proceeds of $10.0 million from the Gigamoon CD issued in December 2024.

Operating
Activities

Net
cash used in operating activities was $8.6 million during the three months ended March 31, 2025, compared with $8.0 million used in operating
activities in the comparative period. The use of funds in operating activities is described in the Results of Operations section above.

Investing
Activities

Net
cash used in investing activities was $0.4 million for the three months ended March 31, 2025.

Net
cash provided by investing activities was $2.7 million for the three months ended March 31, 2024.

Financing
Activities

Net
cash provided by financing activities was $1.5 million for the three months ended March 31, 2025, which was primarily due $2 million
promissory