Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 844

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 844
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.5 million on the fair value of the contingent consideration receivable during the year ended December
31, 2024, included in other operating expenses in the consolidated statements of operations and comprehensive loss.

(c)
FaZe Merger

On
March 7, 2024, the Company completed its acquisition of FaZe (the Merger). Prior to the Merger, the Company created GameSquare Merger
Sub I, Inc. (“Merger Sub”) to effect the Merger. As a result of the Merger, Merger Sub merged with FaZe, with FaZe continuing
as the surviving corporation and as a wholly-owned subsidiary of the Company.

The
Company acquired all issued and outstanding FaZe common shares in exchange for 0.13091 of a GameSquare common share for each FaZe common
share (the “Exchange Ratio”). All outstanding FaZe equity awards and warrants to purchase shares of FaZe common stock were
acquired and exchanged for GameSquare equity awards and warrants to purchase GameSquare common stock on substantially the same terms,
with exercise prices, where applicable, and shares issuable adjusted for the Exchange Ratio.

The
Company incurred transaction costs of $1.4 million associated with the Merger. All such costs were expensed as incurred. The net loss
attributed to FaZe’s operations from the acquisition date to September 30, 2024, was $4.7 million, with revenue of $25.3 million.

The
Merger was accounted for using the acquisition method of accounting under ASC 805, Business Combinations, which requires that
the Company recognize the identifiable assets acquired and the liabilities assumed at their fair values on the date of acquisition. The
estimated fair values are preliminary and based on the information that was available as of that date.

The
following preliminary table summarizes the consideration for the acquisition:

 Schedule of purchase consideration

    Purchase consideration 
    Number of shares  
    Amount 
  
    Common shares(1) 
     10,132,884  
    $12,763,000 
  
    Warrants - Equity(2) 
     775,415  
     26,000 
  
    Options - Vested(2) 
     1,169,619  
     1,256,000 
  
    RSUs / RSAs - Vested(3) 
     413,988  
     542,000 
  
    Total purchase price 
     12,491,906