Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 545

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 545
---
 it provides more meaningful operating results by excluding
the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring expenses.
We define “EBITDA” as net income (loss) before (i) depreciation and amortization; (ii) income taxes; and (iii) interest expense.

21

Adjusted
EBITDA

We
believe Adjusted 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 performance and other one-time or non-recurring
expenses. We define “Adjusted EBITDA” as EBITDA adjusted to exclude extraordinary items, non-recurring items and other non-cash
items, including, but not limited to (i) share based compensation expense, (ii) transaction costs related to merger and acquisition activities,
(iii) arbitration settlement reserves and other non-recurring legal settlement expenses, (iv) restructuring costs, primarily comprised
of employee severance resulting from integration of acquired businesses, (v) impairment of goodwill and intangible assets, (vi) gains
and losses on extinguishment of debt, (vii) change in fair value of assets and liabilities adjusted to fair value on a quarterly basis,
and (viii) gains and losses from discontinued operations.

Reconciliation
of Non-GAAP Measures

A
reconciliation of Adjusted EBITDA to the most directly comparable measure determined under US GAAP is set out below.

    Year ended December 31, 

    2024  
    2023 
  
    Net loss 
    $(54,308,620) 
    $(31,282,427)
  
    Interest expense 
     570,960  
     672,589 
  
    Income tax benefit 
     -  
     (55,096)
  
    Amortization and depreciation 
     3,237,349  
     1,889,075 
  
    Share-based payments 
     2,139,246  
     1,735,630 
  
    Transaction costs 
     6,348,728  
     3,019,373 
  
    Arbitration settlement reserve 
     (229,250) 
     (1,041,129)
  
    Restructuring costs 
     1,334,717  
     545,456 
  
    Legal settlement