Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 18

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 18
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 the decline in revenue in the 2025 period.

Cost
of Sales

Cost of sales for the six months ended June 30, 2025, was $24.8 million,
in comparison to $28.8 million for the same period in 2024. The decrease was primarily related to the decrease in revenue discussed above,
and varying margins of the Company product mix.

Operating
expenses

General
and administrative

General and administrative expenses for the six months ended June 30, 2025,
was $8.4 million, in comparison to $9.4 million for the same period in 2024. The decrease 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. This was partially offset by FaZe Esports being included for a full six month period in 2025 vs.
2024.

Selling
and marketing

Selling and marketing expenses for the six months ended June 30, 2025,
was $3.0 million, in comparison to $3.5 million for the same period in 2024. The decrease 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. This was partially offset by FaZe Esports being included for a full six month period in 2025 vs.
2024.

Research
and development

Research and development expenses for the six months ended June 30, 2025,
was $1.1 million, in comparison to $1.2 million for the same period in 2024. The variance between the periods was not significant.

Depreciation
and amortization

Depreciation and amortization for the six months ended June 30, 2025, was
$0.6 million, in comparison to $1.2 million for the same period in 2024. The decrease was primarily related to intangible asset impairments
taken at December 31, 2024, reducing the go forward amortization as compared to the same period in the prior year.

Restructuring
charges

Restructuring charges for the six months ended June 30, 2025, were $0.8
million, in comparison to $0 for the same period in 2024. The