Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 23

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 23
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 (expense) for the three months ended June 30, 2025, was $(18) thousand, in comparison to $16
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 June 30, 2025, was $(66) thousand, in comparison to $44 thousand for the
same period in 2024. The variance between the periods was not significant.

Other
income (expense), net

Other
income (expense) for the three months ended June 30, 2025, was $(1.3) million, in comparison to $(3.9) million for the same period in
2024. The decrease is primarily due to loss on disposal of Franky Media assets in the 2025 period of $1.5 million, in comparison to $3.8
million in the prior year period.

Net
income (loss) from discontinued operations

Net
income (loss) from discontinued operations for the three months June 30, 2025, was $3.0 million, in comparison to $(2.3) million for
the same period in 2024. The increase in income was primarily related to a larger loss from discontinued operations in the 2024 period
as compared to the 2025 period. As FaZe Media was disposed on April 1, 2025, there are no losses in the 2025 period, while the prior
year period includes loss of $2.6 million, primarily coming from FaZe Media. In addition, the 2025 period includes a $3.0 million gain
on disposal of FaZe Media.

Management’s
use of Non-GAAP Measures

This
MD&A contains certain financial performance measures, including “EBITDA” and “Adjusted EBITDA,” that are
not recognized under accounting principles generally accepted in the United States of America (“GAAP”) and do not have a
standardized meaning prescribed by GAAP. As a result, these measures may not be comparable to similar measures presented by other companies.
For a reconciliation of these measures to the most directly comparable financial information presented in the Financial Statements in
accordance with GAAP, see the section entitled “Reconciliation of Non-GAAP Measures” below.

We
believe EBITDA is a useful measure to assess the performance of the Company as it