Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 122

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 122
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 fair value upon
a business combination and are remeasured at fair value only if an impairment charge is recognized. The Company’s investment, accounted
for under the measurement alternative of ASC 321, is remeasured at fair value only upon an observable price change or if an impairment
charge is recognized. The Company uses unobservable inputs to the valuation methodologies that are significant to the fair value measurements,
and the valuations require management’s judgment due to the absence of quoted market prices. The Company determines the fair value
of its held and used assets, goodwill and intangible assets using an income, cost or market approach as determined reasonable.

17.
Discontinued operations

(a)
Complexity

As
discussed in Note 4, on March 1, 2024, the Company sold Complexity and recognized a gain on disposition of $3.0 million, resulting in
Complexity meeting the requirements for presentation as discontinued operations. Prior to disposition, Complexity was part of the Teams
operating and reportable segment.

The
Company recognized a pretax net loss of $1.4 million for the six months ended June 30, 2024, in net income (loss) from discontinued operations
in the consolidated statements of operations and comprehensive loss in relation to Complexity. The pretax net loss of $1.4 million during
the six months ended June 30, 2024, includes revenue of $1.0 million, cost of revenue of $0.9 million, and operating expenses of $1.5
million.

Complexity
had amortization and depreciation of $0.2 million for the six months ended June 30, 2024. Complexity did not have significant capital
expenditures or significant noncash activity during the periods presented.

(b)
FaZe Media

As
discussed in Note 4, on April 1, 2025, the Company sold FaZe Media and recognized a gain on disposition of $3.0 million, resulting in
FaZe Media meeting the requirements for presentation as discontinued operations. Prior to disposition, FaZe Media was part of the Teams
operating and reportable segment.

The
Company recognized a pretax net loss of $2.6 million and $1.9 million for the six months ended June 30, 2025 and 2024, in net income
(loss) from discontinued operations in the consolidated statements of operations and comprehensive loss in relation to FaZe Media. The
pretax net loss of $2.