Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 112

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 112
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 marketing costs between the two periods.

Research
and development

Research
and development expenses for the three months ended March 31, 2025, was $0.8 million, in comparison to $0.7 million for the same period
in 2024. The variance between the periods was not significant.

Depreciation
and amortization

Depreciation
and amortization for the three months ended March 31, 2025, was $0.6 million, in comparison to $0.8 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 period in the prior year.

27

Restructuring
charges

Restructuring
charges for the three months ended March 31, 2025, were $0.6 million, in comparison to $0 for the same period in 2024. The increase was
due to more continued restructuring and further operational integration post FaZe acquisition.

Other
operating expenses

Other
operating expenses for the three months ended March 31, 2025, was $0.7 million, in comparison to $1.1 million for the same period in
2024. Other operating expenses between the quarters consisted solely 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, in addition to a couple of M&A opportunities
that were pursued during the quarter but ultimately did not sign. The 2024 period included transaction costs related to the acquisition
of FaZe and disposal of Complexity.

Other
income and expenses

Interest
expense, net

Interest
expense, net for the three months ended March 31, 2025, was $0.1 million, in comparison to $0.4 million for the same period in 2024.
The reduction of 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 2023 period only had one month of interest income on the Complexity promissory note
and no interest on the Frankly Media promissory note.

Change
in fair value of convertible debt carried at fair value

Change
in fair value of convertible debt income (expense