Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 414

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 414
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 of $5.7 million, pro-forma 2024 revenue amounted to approximately
$102.0 million. 

Cost
of Sales

Cost of sales for the year ended December 31, 2024,
was $80.9 million, in comparison to $31.2 million for the year ended December 31, 2023. The increase was primarily related to an increase
in revenue associated with the acquisitions of FaZe and Engine discussed above, and varying margins of the Company product mix.

Operating
expenses

General
and administrative

General and administrative expenses for the year ended
December 31, 2024, were $25.1 million, in comparison to $13.6 million for the year ended December 31, 2023. The increase was primarily
related to our acquisitions of Faze and Engine as discussed above. Faze was not part of the prior year comparable results and Engine was
included from April 11, 2023 forward.

Selling
and marketing

Selling and marketing expenses for the year ended
December 31, 2024, were $9.1 million, in comparison to $6.3 million for the year ended December 31, 2023. The increase was primarily related
to our acquisitions of Faze and Engine as discussed above. Faze was not part of the prior year comparable results and Engine was included
from April 11, 2023 forward.

Research
and development

Research and development expenses for the year ended
December 31, 2024, were $3.2 million, in comparison to $3.1 million for the year ended December 31, 2023. The increase was the result
of an increase in expenses from the operations of Engine that were included in the 2023 period from April 11, 2023 forward. Annualizing
the prior year figure, there was an actual reduction in research and development expense in 2024. The reduction is primarily driven by
the disposal of the remaining Frankly SaaS assets on May 31, 2024, leading to a reduction in research and development headcount.

Depreciation
and amortization

Depreciation and amortization for the year ended December
31, 2024, was $3.2 million, in comparison to $1.9 million for the year ended December 31, 2023. The increase was primarily related to
our acquisitions of Faze and Engine as discussed above and the