GameSquare Holdings Files Q2 2024 10-Q

TL;DR

GameSquare (GME) dropped its Q2 10-Q. Check financials.

AI Summary

GameSquare Holdings, Inc. filed its 10-Q for the period ending June 30, 2024. The company, formerly known as Engine Gaming & Media, Inc., reported financial results for the second quarter and first half of 2024. The filing details financial positions and operational updates for GameSquare Holdings, Inc., headquartered in Frisco, Texas.

Why It Matters

This filing provides investors and stakeholders with the latest financial performance and operational details of GameSquare Holdings, Inc., crucial for understanding the company's current standing and future prospects.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information that could reveal significant positive or negative trends, impacting investment decisions.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 20240815 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• GameSquare Holdings, Inc. (company) — Filer of the 10-Q
• Engine Gaming & Media, Inc. (company) — Former name of GameSquare Holdings, Inc.
• 20240630 (date) — End of the reporting period
• 20240815 (date) — Filing date of the 10-Q
• Frisco, TX (location) — Business address of GameSquare Holdings, Inc.

FAQ

Key Financial Figures

• $0.0001 — nge on which registered Common Stock, $0.0001 par value GAME The NASDAQ Stock Mar

Filing Documents

• form10-q.htm (10-Q) — 1490KB
• ex31-1.htm (EX-31.1) — 18KB
• ex31-2.htm (EX-31.2) — 17KB
• ex32-1.htm (EX-32.1) — 6KB
• ex32-2.htm (EX-32.2) — 6KB
• form10-q_001.jpg (GRAPHIC) — 4KB
• 0001493152-24-032651.txt ( ) — 7914KB
• game-20240630.xsd (EX-101.SCH) — 59KB
• game-20240630_cal.xml (EX-101.CAL) — 77KB
• game-20240630_def.xml (EX-101.DEF) — 284KB
• game-20240630_lab.xml (EX-101.LAB) — 537KB
• game-20240630_pre.xml (EX-101.PRE) — 419KB
• form10-q_htm.xml (XML) — 1185KB

forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate,"

forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking without limitation, our expectations concerning the outlook for our business, productivity, plans and goals for future operational improvements and capital investments, operational performance, future market conditions or economic performance and developments in the capital and credit markets and expected future financial performance, as well as any information concerning possible or assumed future results of operations. Forward-looking or implied in those statements. Important factors that could cause such differences include, but are not limited to: the sufficiency of our cash and investments to meet our liquidity needs; our limited operating history and uncertain future prospects and rate of growth due to our limited operating history, including our ability to implement business plans and other expectations; our ability to grow market share in our existing markets or any new markets we may enter; our ability to maintain and grow the strength of our brand reputation; the Company's ability to achieve its objectives; our ability to manage our growth effectively; our ability to retain existing and attract new Esports professionals, content creators and influencers; our success in retaining or recruiting, or changes required in, our officers, directors and other key employees or independent contractors; our ability to maintain and strengthen our community of brand partners, engaged consumers, content creators, influencers an

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Balance Sheets – June 30, 2024 and December 31, 2023 1 Condensed Consolidated Statements of Operations and Other Comprehensive (Loss) Income - Three and Six Months Ended June 30, 2024 and 2023 2 Condensed Consolidated Statements of Stockholders' Equity – Six Months Ended June 30, 2024 and 2023 3 Condensed Consolidated Statements of Cash Flows – Six Months Ended June 30, 2024 and 2023 4 Notes to Condensed Consolidated Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 43 Item 4.

Controls and Procedures

Controls and Procedures 43

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 44 Item 1A.

Risk Factors

Risk Factors 45 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45 Item 3. Defaults Upon Senior Securities 45 Item 4. Mine Safety Disclosures 45 Item 5. Other Information 45 Item 6. Exhibits 46 Exhibit Index 46

Signatures

Signatures 47 PART I – FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS GAMESQUARE HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) June 30, 2024 December 31, 2023 Assets Cash $ 13,895,483 $ 2,945,373 Restricted cash 647,615 47,465 Accounts receivable, net 27,217,541 16,459,684 Government remittances 1,274,994 1,665,597 Contingent consideration, current 293,445 207,673 Promissory note receivable, current 378,878 - Prepaid expenses and other current assets 2,737,688 916,740 Total current assets 46,445,644 22,242,532 Investment 2,673,472 2,673,472 Contingent consideration, non-current - 293,445 Promissory note receivable 8,753,884 - Property and equipment, net 618,272 2,464,633 Goodwill 22,783,315 16,303,989 Intangible assets, net 22,272,577 18,574,144 Right-of-use assets 1,981,105 2,159,693 Total assets $ 105,528,269 $ 64,711,908 Liabilities and Shareholders' Equity Accounts payable $ 31,411,550 $ 23,493,472 Accrued expenses and other current liabilities 13,844,503 5,289,149 Players liability account 47,535 47,465 Deferred revenue 2,244,965 1,930,028 Current portion of operating lease liability 375,155 367,487 Line of credit 5,284,771 4,518,571 Warrant liability 46,547 102,284 Arbitration reserve 289,999 428,624 Total current liabilities 53,545,025 36,177,080 Convertible debt carried at fair value 7,840,442 8,176,928 Operating lease liability 1,807,344 1,994,961 Total liabilities 63,192,811 46,348,969 Commitments and contingencies (Note 14) - - Preferred stock ( no par value, unlimited shares authorized, zero shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively) - - Common stock ( no par value, unlimited shares authorized, 30,990,847 and 12,989,128 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively) - - Additional paid-in capital 117,388,5

View Full Filing

View this 10-Q filing on SEC EDGAR