Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 174

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 174
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 the SEC on April 15, 2025, and amended on April 30, 2025 (the “2024 Form 10-K”).

(b)
Principles of consolidation

The
unaudited condensed consolidated financial statements include the accounts of the Company, all wholly owned and majority-owned subsidiaries
in which the Company has a controlling voting interest and, when applicable, variable interest entities in which the Company has a controlling
financial interest or is the primary beneficiary. Investments in affiliates where the Company does not exert a controlling financial
interest are not consolidated.

All
significant intercompany transactions and balances have been eliminated upon consolidation.

The
Company’s material subsidiaries as of June 30, 2025, are as follows:

Schedule of Material Subsidiaries 

    Name of Subsidiary 
    Country of Incorporation 
    Ownership Percentage  
    Functional Currency
  
    Frankly Media LLC 
    USA 
     100.00% 
    US Dollar
  
    Stream Hatchet S.L. 
    Spain 
     100.00% 
    Euro
  
    Code Red Esports Ltd. 
    United Kingdom 
     100.00% 
    UK Pound
  
    GameSquare Esports (USA) Inc. (dba as Fourth Frame Studios) 
    USA 
     100.00% 
    US Dollar
  
    Faze Clan Inc. 
    USA 
     100.00% 
    US Dollar
  
    Swingman LLC (dba as Zoned) 
    USA 
     100.00% 
    US Dollar
  
    SideQik, Inc. 
    USA 
     100.00% 
    US Dollar

(c)
Use of estimates

The
preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect
the reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses
during the reporting period. Management evaluates these estimates and judgments on an ongoing basis and bases its estimates on historical
experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are
reasonable under the circumstances. Significant estimates have been used by management in conjunction with the following: (i) credit
losses on promissory notes receivable; (ii) valuation of convertible debt; (iii) contingent liabilities; (iv) share-based compensation;
(v) assumptions used in business combinations, primarily related to management forecasting of operating cash flows; and