Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 83

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 83
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0.4 million
for the same period in 2024. The variance between the periods was not significant.

36

Change
in fair value of warrant liability

Change
in fair value of warrant liability income (expense) for the nine months ended September 30, 2025, was $7 thousand, in comparison to
$79 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 nine months ended September 30, 2025, was $35 thousand, in comparison to $252 thousand for the
same period in 2024. The variance between the periods was not significant.

Other
income (expense), net

Other
income (expense), net for the nine months ended September 30, 2025, was $8.3 million, in comparison to $(0.2) million 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 nine months ended September 30, 2025, was $(9.2) million, in comparison to $(9.5)
million for the same period in 2024. The historical results of Frankly, FaZe Media and Complexity are included in discontinued operations.

Three
months ended September 30, 2025 and 2024

Revenue

Revenues
for the three months ended September 30, 2025, were $11.3 million, in comparison to $9.3 million for the same period in 2024. The increase was primarily related to increases in our SaaS and managed services segment for launch of management
services offering and increase in agency services primarily driven by new web3 deals, initiated as the result of the launch of our digital
asset treasury, that closed in the third quarter. Lastly, there was yield income from our DAT in the third quarter of