Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 33

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 33
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 Complexity,
the Faze Media Inc. asset contribution, and the Franky Media asset disposal, while the 2023 period only included transaction costs associated
with the acquisition of Engine. The 2024 period also included $0.5 million expense in change in fair value of contingent consideration
related to the disposal of Frankly radio assets on December 29, 2023.

Other income and expenses

Interest expense, net

Interest expense, net for the year ended December
31, 2024 was $0.6 million, in comparison to $0.7 million for the year ended December 31, 2023. After removing interest income recognized
on the promissory notes from the disposal of Complexity on March 1, 2024 and Frankly Media assets on May 31, 2024, there was a large increase
in interest expense. The increase was primarily related to interest expense on convertible debt acquired in connection with the acquisition
of Engine and line of credit that was closed in September 2023. As such, the comparative prior year period did not include a full year
of interest expense on these instruments.

Loss on debt extinguishment

We recognized a loss on debt extinguishment of $1.0
million during the year ended December 31, 2024, in comparison to $2.2 million for the year ended December 31, 2023. The Company recognized
a day one loss on issuance of debt of $1.4 million on July 8, 2024 in connection with the issuance of the Yorkville CD. The loss is presented
net of the $0.3 million gain on extinguishment of the King Street CD which was paid down in full on July 10, 2024. The 2023 loss was due
to the extinguishment of the EB CD as part of a convertible note refinance.

Change in fair value of convertible debt carried
at fair value

Change in fair value of convertible debt gain for
the year December 31, 2024, was $0.6 million in comparison to $0.5 million for the year ended December 31, 2023. The variance was not
significant.

20

Change in fair value of investment

Change in fair value of investment for the year December
31, 2024 was $0.5 million, in comparison to $0.5 million loss for the year ended December 31, 2023. The variance was not significant.

Change in