Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 542

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 542
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 to more restructuring
needed post FaZe acquisition as compared to Engine acquisition the prior year.

Impairment expense

Impairment expense was $12.5 million for the year
ended December 31, 2024, in comparison to $7.0 million for the year ended December 31, 2023. The Company concluded goodwill related to
Stream Hatchet and Sideqik reporting units were impaired as of December 31, 2024 and recorded an impairment
charge of $7.4 million for the year ended December 31, 2024. In addition, during the year ended December 31, 2024, the Company recorded an impairment
of intangible assets acquired on the acquisition of Engine (Stream Hatchet and Sideqik reporting units) of $4.0 million. The prior year
included goodwill impairment of the Frankly reporting unit of $7.0 million.

Other operating expenses

Other operating expenses for the year ended December
31, 2024, were $6.9 million, in comparison to $3.1 million for the year ended December 31, 2023. Other operating expenses between the
quarters consisted primarily of transaction related expenses. The increase was primarily related to additional transaction activities
in the 2024 period. The 2024 period primarily included transaction costs associated with the acquisition of FaZe, the disposal of Complexity,
the Faze Media Inc. asset contribution, and the Franky Media asset disposal, while the 2023 period only included transaction costs associated
with the acquisition of Engine. The 2024 period also included $0.5 million expense in change in fair value of contingent consideration
related to the disposal of Frankly radio assets on December 29, 2023.

Other income and expenses

Interest expense, net

Interest expense, net for the year ended December
31, 2024 was $0.6 million, in comparison to $0.7 million for the year ended December 31, 2023. After removing interest income recognized
on the promissory notes from the disposal of Complexity on March 1, 2024 and Frankly Media assets on May 31, 2024, there was a large increase
in interest expense. The increase was primarily related to interest expense on convertible debt acquired in connection with the acquisition
of Engine and line of credit that was closed in September 2023. As such, the comparative prior year period did not include a full year
of interest expense