Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 181

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 181
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 $(17) thousand for the same
period in 2024. The decrease in expense, net was due to interest income on the promissory notes from the disposal of Complexity on
March 1, 2024. The 2024 period only had seven months of interest income on the Complexity promissory note. In addition, the Company’s average interest bearing debt balance has declined between the
two periods.

Loss on extinguishment
of debt

Loss on extinguishment of debt for the nine months ended September 30, 2025, was $0, in comparison to $1.0 million
for the same period in 2024. The Company recognized a day one loss on issuance of debt of $1.4 million on July 8, 2024 in connection with
the issuance of the Yorkville CD. The loss is presented net of the $0.3 million gain on extinguishment of the King Street CD which was
paid down in full on July 10, 2024.

Change
in fair value of convertible debt carried at fair value

Change
in fair value of convertible debt income (expense) for the nine months ended September 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.

36

Change
in fair value of warrant liability

Change
in fair value of warrant liability income (expense) for the nine months ended September 30, 2025, was $7 thousand, in comparison to
$79 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 nine months ended September 30, 2025, was $35 thousand, in comparison to $252 thousand for the
same period in 2024. The variance between the periods was not significant.

Other
income (expense), net

Other
income (expense), net for the nine months ended September 30, 2025, was $8.3 million, in comparison to $(0.2) million for the same period in 2024.
The increase in income was due to the launch of our digital asset treasury in the third quarter of 2025. The line item is comprised of realized and change in unrealized gains (losses) on all of our crypto holdings, including
our investment