Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 147

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 147
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 in headcount,
technology expenses and other overhead. This was partially offset by FaZe Esports being included for a full six month period in 2025 vs.
2024.

Research
and development

Research and development expenses for the six months ended June 30, 2025,
was $1.1 million, in comparison to $1.2 million for the same period in 2024. The variance between the periods was not significant.

Depreciation
and amortization

Depreciation and amortization for the six months ended June 30, 2025, was
$0.6 million, in comparison to $1.2 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.

Restructuring
charges

Restructuring charges for the six months ended June 30, 2025, were $0.8
million, in comparison to $0 for the same period in 2024. The increase was primarily related to continued efforts made by the Company
to reduce operating expenses during the second half of 2024 and first half of 2025, primarily through reductions in headcount, technology
expenses and other overhead, which lead to additional restructuring costs.

Other
operating expenses

Other operating expenses for the six months ended June 30, 2025, was $1.3
million, in comparison to $2.1 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, 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 and Frankly Media assets.

Other
income and expenses

Interest
expense, net

Interest expense, net for the six months ended June 30, 2025, was $5 thousand,
in comparison to $0.6 million for the same period in 2024. The decrease in 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,