Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 287

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 287
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3. As such, there is only three quarters of
SaaS + Advertising revenue for this operating segment in the prior year. The large increase in revenue is also due to significant growth
derived primarily from programmatic advertising year over year.

Update
on 2024 Guidance

The
Company had previously announced, subsequent to the closing of the acquisition of Faze, pro-forma annual revenue guidance of $100+ million. When
including Faze revenue for the period from January 1, 2024 to March 7, 2024 of $5.7 million, pro-forma 2024 revenue amounted to approximately
$102.0 million. 

Cost
of Sales

Cost of sales for the year ended December 31, 2024,
was $80.9 million, in comparison to $31.2 million for the year ended December 31, 2023. The increase was primarily related to an increase
in revenue associated with the acquisitions of FaZe and Engine discussed above, and varying margins of the Company product mix.

Operating
expenses

General
and administrative

General and administrative expenses for the year ended
December 31, 2024, were $25.1 million, in comparison to $13.6 million for the year ended December 31, 2023. The increase was primarily
related to our acquisitions of Faze and Engine as discussed above. Faze was not part of the prior year comparable results and Engine was
included from April 11, 2023 forward.

Selling
and marketing

Selling and marketing expenses for the year ended
December 31, 2024, were $9.1 million, in comparison to $6.3 million for the year ended December 31, 2023. The increase was primarily related
to our acquisitions of Faze and Engine as discussed above. Faze was not part of the prior year comparable results and Engine was included
from April 11, 2023 forward.

Research
and development

Research and development expenses for the year ended
December 31, 2024, were $3.2 million, in comparison to $3.1 million for the year ended December 31, 2023. The increase was the result
of an increase in expenses from the operations of Engine that were included in the 2023 period from April 11, 2023 forward. Annualizing
the prior year figure, there was an actual reduction in research and development expense in 202