Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 232

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 232
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period in 2024. The Company launched its DAT in the third quarter of 2025.

Cost
of Revenue

Cost
of revenue for the nine months ended September 30, 2025, was $15.5 million, in comparison to $12.4 million for the same period in
2024. The increase was primarily related to the increase in revenue discussed above, and varying margins of the Company product
mix.

Operating
expenses

General
and administrative

General
and administrative expenses for the nine months ended September 30, 2025, was $13.8 million, in comparison to $11.8 million for the
same period in 2024. The increase was due to $1.9 million in stock based compensation recorded during the current period from new RSU
grants to employees and warrant grant to a service provider, in addition to the operations of Click that contributed 19 days of operating
results post close in the current period.

Selling
and marketing

Selling
and marketing expenses for the nine months ended September 30, 2025, was $4.2 million, in comparison to $4.1 million for the same period in
2024. The variance between the periods was not significant.

35

Research
and development

Research
and development expenses for the nine months ended September 30, 2025, was $1.5 million, in comparison to $1.4 million for the same
period in 2024. The variance between the periods was not significant.

Depreciation
and amortization

Depreciation
and amortization for the nine months ended September 30, 2025, was $0.7 million, in comparison to $1.0 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 prior year period.

Restructuring
charges

Restructuring
charges for the nine months ended September 30, 2025, were $(0.8) million, in comparison to $0.3 million for the same period in
2024. The decrease was due to initiative the Company started in the third quarter of 2025 to write off significantly aged AP (three
+ years) relating to discontinued operations and services, wherein the local statute of limitations has expired for legal recourse
by the vendor. This was partially