11. Leases

On June 30, 2021, the Company acquired Complexity. Complexity leased a building in Frisco, Texas. Upon the sale of Complexity (see Note 4), the lease was assigned to GameSquare Esports (USA), Inc. and the Company entered into an agreement to sublease the building to Complexity for a 12-month period. The lease has an original lease period expiring in April 2029. The lease agreement does not contain any material residual value guarantees or material restrictive covenants.

On April 1, 2024, GameSquare Holdings, Inc. leased a building in Culver City, CA, which it later assigned to Faze Media Inc. on May 15, 2024. The lease has an original lease period expiring in March 2027. The lease agreement does not contain any material residual value guarantees or material restrictive covenants. The Company disposed of Faze Media Inc. on April 1, 2025, including the lease right-of-use assets and lease liabilities (see Note 4).

The components of operating lease expense, recognized in general and administrative expenses on the consolidated statements of operations and comprehensive loss, are as follows:

 Schedule of components operating lease expense 

As of December 31, 2025, the remaining lease-term and discount rate on the Frisco, TX lease was 3.3 years and 8.3%, respectively.

Maturities of the lease liability are as follows:

 Schedule of maturities of lease liability