Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 163

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 163
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6 million, in comparison to a $0 for the year ended December 31, 2023. The add
back of loss (income to GameSquare shareholders) represents non-controlling interests share of the net loss 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 provides more meaningful operating results by excluding
the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring expenses.
We define “EBITDA” as net income (loss) before (i) depreciation and amortization; (ii) income taxes; and (iii) interest expense.

21

Adjusted
EBITDA

We
believe Adjusted EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results
by excluding the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring
expenses. We define “Adjusted EBITDA” as EBITDA adjusted to exclude extraordinary items, non-recurring items and other non-cash
items, including, but not limited to (i) share based compensation expense, (ii) transaction costs related to merger and acquisition activities,
(iii) arbitration settlement reserves and other non-recurring legal settlement expenses, (iv) restructuring costs, primarily comprised
of employee severance resulting from integration of acquired businesses, (v) impairment of goodwill and intangible assets, (vi) gains
and losses on extinguishment of debt, (vii) change in fair value of assets and liabilities adjusted to fair value on a quarterly basis,
and (viii) gains and losses from discontinued operations.

Reconciliation
of Non-GAAP Measures

A
reconciliation of Adjusted EBITDA to the most directly comparable measure determined under US GAAP is set out below.

    Year ended December