Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 114

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 114
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 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.

28

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,
(viii) gains and losses from discontinued operations, and (ix) Net income (loss) attributable to non-controlling interest.

Reconciliation
of Non-GAAP Measures

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

    Three
    months ended March 31, 

    2025  
    2024 
  
    Net loss 
    $(7,173,736) 
    $(5,260,948)
  
    Interest expense 
     49,558  
     435,128 
  
    Amortization and depreciation 
     581,795  
     755,449 
  
    Share-based payments 
     28,998  
     419,228 
  
    Transaction costs 
     745,377  
     1,093,420 
  
    Arbitration settlement
    reserve 
     (55,583) 
     (95,125)
  
    Restructuring costs 
     577,871  
     - 
  
    Change in fair value of
    warrant liability 
     (5,347) 
     (37,257)
  
    Change in fair value of
    convertible debt carried at fair value