Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 19

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 19
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 increase was primarily related to continued efforts made by the Company
to reduce operating expenses during the second half of 2024 and first half of 2025, primarily through reductions in headcount, technology
expenses and other overhead, which lead to additional restructuring costs.

Other
operating expenses

Other operating expenses for the six months ended June 30, 2025, was $1.3
million, in comparison to $2.1 million for the same period in 2024. Other operating expenses between the quarters consisted primarily
of transaction related expenses. The Company incurred transaction costs in the 2025 period connected to the disposal of Faze Media Inc.
on April 1, 2025, in addition to a couple of M&A opportunities that were pursued during the quarter but ultimately did not sign. The
2024 period included transaction costs related to the acquisition of FaZe and disposal of Complexity and Frankly Media assets.

Other
income and expenses

Interest
expense, net

Interest expense, net for the six months ended June 30, 2025, was $5 thousand,
in comparison to $0.6 million for the same period in 2024. The decrease in interest expense, net was due to interest income on the promissory
notes from the disposal of Complexity on March 1, 2024 and Frankly Media assets on May 31, 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 $(