Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 241

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 241
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 recognition constraint. That is, royalty revenue is recognized at the time when the sale occurs.

Talent
representation service revenues

Talent
representation service revenue is recorded on completion of the event in which the talent management service has been provided.

Influencer
promotional fees

Influencer
marketing and promotional fees are recognized over the period during which the services are performed. Revenue and income from custom
service contracts are determined on the percentage of completion method, based on the ratio of contract timepassed in the reporting period
over estimated total length of the contract.

Consulting
fees and other revenues

Consulting
fees and other revenues are recognized when the services have been performed.

Software-as-a-service

The
Company enters into license agreements with customers for its content management system, video software, and mobile applications (Frankly),
e-sports data platform (Stream Hatchet) and an influencer marketing platform (SideQik). These license agreements, generally non-cancellable,
without paying a termination penalty, and multiyear, provide the customer with the right to use the Company’s application solely
on a Company-hosted platform or, in certain instances, on purchased encoders. The license agreements also entitle the customer to technical
support.

Revenue
from these license agreements is recognized ratably over the license term. Early termination fees are recognized when a customer ceases
use of agreed upon services prior to the expiration of their contract. These fees are recognized in full on the date the customer has
completed their migration of the Company’s solutions and there is no continuing service obligation to the customer.

The
Company charges its customers for the optional use of its content delivery network to stream and store videos. The revenue is recognized
as earned based on the actual usage because it has stand-alone value and delivery is in control of the customer. The Company also charges
its customers for the use of its ad serving platform to serve ads under local advertising campaigns. The Company reports revenue as earned
based on the actual usage.

37

Advertising

Under
national advertising agreements with advertisers, the Company sources, creates, and places advertising campaigns that run across the
Company’s network of publisher sites. National advertising revenue, net of third-party costs, is shared with publishers based on
their respective contractual agreements. The Company invoices national advertising amounts due from advertisers and remits payments to
publishers for their share. Depending on the agreement with the publisher, the obligation to remit payment to the publisher is based
on either billing to the