Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 1346

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 1346
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 employee severance costs as a result of the restructuring of GameSquare
and Engine post-closing of the Arrangement.

    F-21

(cc)
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.

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 December 31, 2024,
the Company is organized into the three operating segments, which also represent its three reportable segments: Teams, Agency and Software-as-service
(SaaS) + Advertising.

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.

(dd)
Advertising costs

The
Company expenses advertising costs as incurred. Advertising and promotion costs for the years ended December 31, 2024 and 2023, were
$0.6 million, and are included in selling and marketing expense in the consolidated statements of operations and comprehensive loss.

3.
Recent accounting pronouncements

(a)
Pending adoption

In
December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.
2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires that
public business entities must annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information
for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent
of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). This ASU is effective for fiscal
years beginning after December 15, 2024, with early adoption permitted. The ASU is to be applied prospectively. Retroactive application
is permitted. The Company has not early adopted and continues to evaluate the impact of the provisions of ASU 2023-09 on its consolidated
financial statements.

(b)
Adopted

In
November 2023, the FASB issued