Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 713

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 713
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the Company’s underlying performance for the period under evaluation to determine resource allocation. As of December 31, 2024,
the Company is organized into the three operating segments, which also represent its three reportable segments: Teams, Agency and Software-as-service
(SaaS) + Advertising.

ASC
280 establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products
and services, major customers, and the countries in which the entity holds material assets and reports revenue.

(dd)
Advertising costs

The
Company expenses advertising costs as incurred. Advertising and promotion costs for the years ended December 31, 2024 and 2023, were
$0.6 million, and are included in selling and marketing expense in the consolidated statements of operations and comprehensive loss.

3.
Recent accounting pronouncements

(a)
Pending adoption

In
December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.
2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires that
public business entities must annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information
for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent
of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). This ASU is effective for fiscal
years beginning after December 15, 2024, with early adoption permitted. The ASU is to be applied prospectively. Retroactive application
is permitted. The Company has not early adopted and continues to evaluate the impact of the provisions of ASU 2023-09 on its consolidated
financial statements.

(b)
Adopted

In
November 2023, the FASB issued ASU No 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU
2023-07”). ASU 2023-07 is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures
about significant segment expenses. The provisions of ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and
interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The guidance will be applied retrospectively
to