Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 51

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 4
Chunk 51
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 deemed to create a material weakness, a material
misstatement to our consolidated financial statements might not be prevented or detected on a timely basis.

Management’s
Remediation Measures

To
address the deficiencies identified, management, with oversight of the Audit Committee, has implemented, or will implement, remediation
measures to further address the deficiencies in the design of its DC&P and ICFR. The Company intends to complete such remedial measures
by December 31, 2026. Management has also performed an initial risk assessment using a top-down, risk-based approach with respect to
the risks of material misstatement of the consolidated financial statements. In addition, compensating controls have been applied to
a number of areas where the risks of material misstatement are considered moderate to high. The Company is engaging outside resources
to strengthen the business process documentation and help with management’s self-assessment and testing of internal controls. Although
the Company can give no assurance that these actions will remediate these deficiencies or that additional deficiencies or a material
weaknesses will not be identified in the future, management believes the foregoing efforts will, when implemented, strengthen our DC&P
and ICFR. Management will take additional remedial actions as necessary as they continue to evaluate and work to improve the Company’s
control environment.

Changes
in Internal Control Over Financial Reporting

There
were no changes in the Company’s internal control over financial reporting that occurred during the six months ended June 30,
2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over
financial reporting.

41

PART
II - OTHER INFORMATION

ITEM
1. LEGAL PROCEEDINGS

Allinsports
- In April 2020, Engine announced its renegotiation of the acquisition of Allinsports. The revised purchase agreement provided for the
acquisition of 100% of Allinsports in exchange for the issuance of 241,666 common shares of the Engine and other considerations, including
payments of $1,200,000 as a portion of the purchase consideration. In September 2020, Engine advised the shareholders of Allinsports
that closing conditions of the transaction, including the requirement to provide audited financial statements, had not been satisfied.

In
response, in November 2020, the shareholders of Allinsports commenced arbitration in Alberta, Canada seeking, among other things, to
compel Engine to complete the acquisition of Allinsports without the audited financial statements, and to issue