Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 113

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 113
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) for the three months ended March 31, 2025, was $0.3 million, in comparison to $(0.1)
million for the same period in 2024. The variance between the periods was not significant.

Change
in fair value of warrant liability

Change
in fair value of warrant liability income (expense) for the three months ended March 31, 2025, was $5 thousand, in comparison to $37
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 three months ended March 31, 2025, was $0.1 million, in comparison to $0.1 million for the
same period in 2023. The variance between the periods was not significant.

Other
income (expense), net

Other
income (expense) for the three months ended March 31, 2025, was $(0.1) million, in comparison to $(0.1) million for the same period in
2024. The variance between the periods was not significant.

Net
income (loss) from discontinued operations

Net
income (loss) from discontinued operations for the three months March 31, 2025, was $(0.3) million, in comparison to a net income of
$1.5 million for the same period in 2024. The decrease in net income was primarily related to gain on disposal of Complexity of $3.0
million in the 2024 period partially offset by net loss from operations of Complexity of $1.4 million.

Management’s
use of Non-GAAP Measures

This
MD&A contains certain financial performance measures, including “EBITDA” and “Adjusted EBITDA,” that are
not recognized under accounting principles generally accepted in the United States of America (“GAAP”) and do not have a
standardized meaning prescribed by GAAP. As a result, these measures may not be comparable to similar measures presented by other companies.
For a reconciliation of these measures to the most directly comparable financial information presented in the Financial Statements in
accordance with GAAP, see the section entitled “Reconciliation of Non-GAAP Measures” below.

We
believe EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding
the effects of expenses that are not reflective of our underlying business