Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 148

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 148
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2024. The 2024 period only had four months
of interest income on the Complexity promissory note and one month interest on the Frankly Media promissory note. In addition, the Company’s
average interest bearing debt balance has declined between the two periods.

Change
in fair value of convertible debt carried at fair value

Change in fair value of convertible debt income (expense) for the six months
ended June 30, 2025, was $0.3 million, in comparison to $0.4 million for the same period in 2024. The variance between the periods was
not significant.

32

Change
in fair value of warrant liability

Change in fair value of warrant liability income (expense) for the six
months ended June 30, 2025, was $(12) thousand, in comparison to $53 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 six months ended
June 30, 2025, was $(10) thousand, in comparison to $0.1 million for the same period in 2024. The variance between the periods was not
significant.

Other
income (expense), net

Other income (expense) for the six months ended June 30, 2025, was $(1.3)
million, in comparison to $(4.0) million for the same period in 2024. The decrease is primarily due to loss on disposal of Franky Media
assets in the 2025 period of $1.5 million, in comparison to $3.8 million in the prior year period.

Net
income (loss) from discontinued operations

Net income (loss) from discontinued operations for the six months June
30, 2025, was $0.1 million, in comparison to $(0.5) million for the same period in 2024. The increase in income was primarily related
a larger loss from discontinued operations in the 2024 period as compared to the 2025 period. Both periods included a large gain on disposal
of subsidiary of approximately $3 million (Complexity disposal in 2024 and FaZe Media disposal in 2025).

Three
months ended June 30, 2025 and 2024

Revenue

Revenues
for the three months ended June 30, 2025, were $15.9 million,