Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 85

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 85
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 CA, which it later assigned to Faze Media Inc. on May 15,
2024. The lease has an original lease period expiring in March 2027. The lease agreement does not contain any material residual value
guarantees or material restrictive covenants.

    12

The
components of operating lease expense are as follows:

Schedule of components operating lease expense 

    Three
    months ended March 31, 

    Operating lease expense 
     229,509  
     135,772 
  
    Variable lease expense 
     85,924  
     46,340 
  
    Total
    operating lease costs 
     315,433  
     182,112 

As
of March 31, 2025, the remaining lease-term and discount rate on the Frisco, TX lease was 4.1 years and 8.3%, respectively. As of March
31, 2025, the remaining lease-term and discount rate on the Culver City, CA lease was 2.0 years and 7.0%, respectively.

Maturities
of the lease liability are as follows:

Schedule of Maturities of Lease Liability 

    2025 
     703,224 
  
    2026 
     937,632 
  
    2027 
     643,764 
  
    2028 
     545,808 
  
    2029 
     181,936 
  
    Thereafter 
     - 
  
    Total lease payments 
     3,012,364 
  
    Less: Interest 
     (384,831)
  
    Total
    lease liability 
    $2,627,533 

7.
Line of credit

On
September 14, 2023, the Company entered into an accounts receivable financing and security agreement with a maximum availability of $10.0
million for a three-year term with SLR Digital Finance, LLC (the “LOC”). The LOC matures on September 14, 2026. Interest
accrues on the outstanding principal amount of the LOC at a rate equal to the greater of Prime plus 4.00% or 9.50%, per annum. The terms
of the LOC provide for the lender to fund 85% of the purchased accounts receivable and it includes various service fees.

As
of March 31, 2025, the outstanding principal,