Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 170

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 170
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 acquisition
of FaZe and disposal of Complexity.

Other
income and expenses

Interest
expense, net

Interest
expense, net for the three months ended March 31, 2025, was $0.1 million, in comparison to $0.4 million for the same period in 2024.
The reduction of 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 2023 period only had one month of interest income on the Complexity promissory note
and no interest on the Frankly Media promissory note.

Change
in fair value of convertible debt carried at fair value

Change
in fair value of convertible debt income (expense) for the three months ended March 31, 2025, was $0.3 million, in comparison to $(0.1)
million for the same period in 2024. The variance between the periods was not significant.

Change
in fair value of warrant liability

Change
in fair value of warrant liability income (expense) for the three months ended March 31, 2025, was $5 thousand, in comparison to $37
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 three months ended March 31, 2025, was $0.1 million, in comparison to $0.1 million for the
same period in 2023. The variance between the periods was not significant.

Other
income (expense), net

Other
income (expense) for the three months ended March 31, 2025, was $(0.1) million, in comparison to $(0.1) million for the same period in
2024. The variance between the periods was not significant.

Net
income (loss) from discontinued operations

Net
income (loss) from discontinued operations for the three months March 31, 2025, was $(0.3) million, in comparison to a net income of
$1.5 million for the same period in 2024. The decrease in net income was primarily related to gain on disposal of Complexity of $3.0
million in the 2024 period partially offset by net loss from operations of Complexity of $1.4 million.

Management’s