Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 549

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 549
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 trust for the Alberta Energy Regulator of $0.3 million to be remote,
the outcome of any such contingent matters is inherently uncertain.

Litigation
and arbitration

We
are subject to various claims, lawsuits and other complaints arising in the ordinary course of business. We record provisions for losses
when claims become probable, and the amounts are estimable. Although the outcome of such matters cannot be determined, it is the opinion
of management that the final resolution of these matters will not have a material adverse effect on our financial condition, operations,
or liquidity.

Off-Balance
Sheet Arrangements

We
do not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on the
results of operations or financial condition of the Company including, without limitation, such considerations as liquidity and capital
resources.

Critical
Accounting Policies and Estimates

Our
discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which
have been prepared in accordance with GAAP. The preparation of our consolidated financial statements and related disclosures requires
us to make estimates, assumptions, and judgments as of the balance sheet date that affect the reported amounts of assets, liabilities,
revenues, costs and expenses and related disclosures. Our actual results may differ from these estimates under different assumptions
and conditions.

Revenue
recognition

Revenue is measured based on the consideration specified
in a contract with a customer. The Company recognizes revenue when it transfers control of its services to a customer.

The following provides information about the nature
and timing of the satisfaction of performance obligations in contracts with customers, including significant payment terms and related
revenue recognition policies:

Brand Sponsorships

The Company offers advertisers a full range of promotional
vehicles, including but not limited to online advertising, livestream announcements, event content generation, social media posts, logo
placement on the Company’s official merchandise, and special appearances of members of the Company’s talent roster. The Company’s
brand sponsorship agreements may include multiple services that are capable of being individually distinct; however the intended benefit
is an association with the Company’s brand, and the services are not distinct within the context of the contracts. Revenues from
brand sponsorship agreements are recognized ratably over the contract term. Payment terms and conditions vary, but payments are generally
due periodically throughout the term of the contract. In instances where the timing of revenue recognition differs from the timing of
billing, management has determined the brand sponsorship agreements generally do