Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 233

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 233
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 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 (expense) for the three months ended June 30, 2025, was $(18) thousand, in comparison to $16
thousand for the same period in 2024. The variance between the periods was not significant.

Arbitration
settlement reserve

Arbitration
settlement reserve income (expense) for the three months ended June 30, 2025, was $(66) thousand, in comparison to $44 thousand for the
same period in 2024. The variance between the periods was not significant.

Other
income (expense), net

Other
income (expense) for the three months ended June 30, 2025, was $(1.3) million, in comparison to $(3.9) million for the same period in
2024. The decrease is primarily due to loss on disposal of Franky Media assets in the 2025 period of $1.5 million, in comparison to $3.8
million in the prior year period.

Net
income (loss) from discontinued operations

Net
income (loss) from discontinued operations for the three months June 30, 2025, was $3.0 million, in comparison to $(2.3) million for
the same period in 2024. The increase in income was primarily related to a larger loss from discontinued operations in the 2024 period
as compared to the 202