Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 82

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 82
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 legal recourse
by the vendor. This was partially offset by increases related to continued efforts made by the Company to reduce operating expenses
during the second half of 2024 and  2025, primarily through reductions in headcount, technology expenses and other
overhead.

Other
operating expenses

Other
operating expenses for the nine months ended September 30, 2025, was $2.4 million, in comparison to $3.4 million for the same period
in 2024. Other operating expenses between the quarters consisted primarily of transaction related expenses. The Company incurred
transaction costs in the 2025 period connected to the disposal of Faze Media Inc. on April 1, 2025 and acquisition of Click on
September 11, 2025, in addition to a couple of M&A opportunities that were pursued during the current period but ultimately did
not sign. The 2024 period included transaction costs related to the acquisition of FaZe and disposal of Complexity and Frankly Media
assets.

Other
income and expenses

Interest
income (expense), net

Interest
(income) expense, net for the nine months ended September 30, 2025, was $0.3 million, in comparison to $(17) thousand for the same
period in 2024. The decrease in expense, net was due to interest income on the promissory notes from the disposal of Complexity on
March 1, 2024. The 2024 period only had seven months of interest income on the Complexity promissory note. In addition, the Company’s average interest bearing debt balance has declined between the
two periods.

Loss on extinguishment
of debt

Loss on extinguishment of debt for the nine months ended September 30, 2025, was $0, in comparison to $1.0 million
for the same period in 2024. 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.

Change
in fair value of convertible debt carried at fair value

Change
in fair value of convertible debt income (expense) for the nine months ended September 30, 2025, was $0.3 million, in comparison to $