Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 159

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 159
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 of $3.0 million, resulting in
Complexity meeting the requirements for presentation as discontinued operations. Prior to disposition, Complexity was part of the Teams
operating and reportable segment.

The
Company recognized a pretax net loss of $1.4 million for the three months ended March 31, 2024, in net income (loss) from discontinued
operations in the consolidated statements of operations and comprehensive loss in relation to Complexity. The pretax net loss of $1.4
million during the three months ended March 31, 2024, includes revenue of $1.0 million, cost of revenue of $0.9 million, and operating
expenses of $1.5 million.

Complexity
had amortization and depreciation of $0.2 million for the three months ended March 31, 2024. Complexity did not have significant capital
expenditures or significant noncash activity during the periods presented.

18.
Subsequent events

Gigamoon
CD – Disposal of Faze Media

As
previously disclosed, on November 13, 2024, the Company and Gigamoon entered into a senior secured convertible promissory note in the
principal amount of $10 million (the “Gigamoon CD”). On April 2, 2025, GameSquare and Gigamoon entered into an exchange agreement,
effective April 1, 2025, pursuant to which, the parties agreed to accelerate the exercise date under the Gigamoon CD to April 1, 2025.
As a result, on April 1, 2025, GameSquare transferred the 5,725,000 shares of Series A-1 Preferred Stock of Faze Media Inc. to Gigamoon. This represented all of the remaining shares of Faze Media held by the Company, resulting in disposal of Faze Media.
As there was no formal plan in place to dispose of Faze Media and the disposal was contingent upon the option holder exercising its option
to acquire the remaining shares of Faze Media, which was not in the Company’s control, the held for sale criteria was not met as
of the balance sheet date. The Company will reflect Faze Media as discontinued operations in its second quarter financial statements when
the sale occurred.

22

ITEM
2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Unless
the context otherwise requires, all references in this section to the “Company,” “