Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 1118

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 1118
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 liability using the Black-Scholes option pricing model:

 Schedule of assumptions fair value of warrant liability

    December 31, 2024  
    December 31, 2023 
  
    Share price 
      CAD$1.19   
      CAD$2.91  
  
    Term, in years 
     2.75  
     0.39 - 4.00 
  
    Exercise price 
     CAD$9.68  
     CAD$6.29 - $30.00 
  
    Expected volatility 
     100.00% 
     90.00%
  
    Risk-free interest rate 
     2.85% 
     4.25% - 5.45%
  
    Expected dividend yield 
     0% 
     0%

Volatility
was estimated by using the average historical volatility of the Company. The expected life in years represents the period of time that
warrants issued are expected to be outstanding. The risk-free rate is based on government treasury bond rates issued with a remaining
term approximately equal to the expected life of the warrants.

The
following is a summary of liability-classified warrants outstanding as of December 31, 2024 and 2023, and changes during the periods
then ended:

 Schedule of warrants outstanding

    Weighted-average 

    Number of  
    exercise price 

    warrants  
    (CAD) 
  
    Outstanding, December 31, 2022 
     -  
    $- 
  
    Acquisition of Engine 
     269,601  
     30.00 
  
    Reclassify GSQ Esports Inc. warrants to warrant liability 
     927,228  
     23.51 
  
    Warrants expired 
     (438,918) 
     29.05 
  
    Outstanding, December 31, 2023 
     757,911  
    $22.61 
  
    Warrants expired 
     (633,981) 
     25.14 
  
    Outstanding, December 31, 2024 
     123,930  
    $9.68 

(b)
Equity-classified warrants

As
discussed in Note 16(a) above, all of GSQ’s warrants with a CAD exercise price were modified and reclassified to a warrant liability
on April 11, 202