Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 22

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 22
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ization as
compared to the same period in the prior year.

Restructuring
charges

Restructuring
charges for the three months ended June 30, 2025, were $0.2 million, in comparison to $0 for the same period in 2024. The increase was
primarily related to continued efforts made by the Company to reduce operating expenses during the second half of 2024 and first half
of 2025, primarily through reductions in headcount, technology expenses and other overhead, which lead to additional restructuring costs.

Other
operating expenses

Other
operating expenses for the three months ended June 30, 2025, was $0.5 million, in comparison to $1.0 million for the same period in 2024.
Other operating expenses between the quarters consisted primarily of transaction related expenses. The Company incurred transaction costs
in the 2025 period connected to the disposal of Faze Media Inc. on April 1, 2025, in addition to a couple of M&A opportunities that
were pursued during the quarter but ultimately did not sign. The 2024 period included transaction costs related to the acquisition of
FaZe and disposal of Complexity and Frankly Media assets.

Other
income and expenses

Interest
expense, net

Interest
expense income (expense), net for the three months ended June 30, 2025, was $45 thousand, in comparison to $(0.2) million for the same
period in 2024. The decrease in interest expense, net was due to interest income on the promissory notes from the disposal of Complexity
on March 1, 2024 and Frankly Media assets on May 31, 2024. The 2024 period only had one month interest income on the Frankly Media promissory
note. In addition, the Company’s average interest bearing debt balance has declined between the two periods.

Change
in fair value of convertible debt carried at fair value

Change
in fair value of convertible debt income (expense) for the three months ended June 30, 2025, was $(6) thousand, in comparison to $0.6
million for the same period in 2024. The income in the 2024 period was due to additional decline in our share price, reducing the fair
value of the conversion feature on the convertible debt outstanding.

33

Change
in fair value of warrant liability

Change
in fair value of warrant liability income