Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 185

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 185
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 the three months ended September 30, 2025, was $8.1 million, in comparison to $21
thousand for the same period in 2024. The increase in income was due to the launch of our digital asset treasury in the third quarter
of 2025. The line item is comprised of realized and change in unrealized gains (losses) on all of our crypto holdings, including our investment
in ETH fund. The gain is primarily driven by the change in unrealized gain of $9.6 million from our investment in ETH fund. This was partially
offset by change in unrealized losses on digital assets, Anime and Rekt token holdings during the period.

Net
income (loss) from discontinued operations

Net income (loss) from discontinued operations for the three months ended September 30, 2025, was $(6.8) million,
in comparison to $(3.5) million for the same period in 2024. The historical results of Frankly, FaZe Media and Complexity are included
in discontinued operations.

Management’s
use of Non-GAAP Measures

This
Report contains certain financial performance measures, including “EBITDA” and “Adjusted EBITDA,” that are
not recognized under accounting principles generally accepted in the United States of America (“GAAP”) and do not have a
standardized meaning prescribed by GAAP. As a result, these measures may not be comparable to similar measures presented by other companies.
For a reconciliation of these measures to the most directly comparable financial information presented in the Financial Statements in
accordance with GAAP, see the section entitled “Reconciliation of Non-GAAP Measures” below.

We
believe EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding
the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring expenses.
We define “EBITDA” as net income (loss) before (i) depreciation and amortization; (ii) income taxes; and (iii) interest expense.

Adjusted
EBITDA

We
believe Adjusted EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results
by excluding the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring
expenses. We define “Adjusted EBITDA” as EBITDA adjusted to exclude extraordinary items, non-recurring items