Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 32

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 32
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 in expenses from the operations of Engine that were included in the 2023 period from April 11, 2023 forward. Annualizing
the prior year figure, there was an actual reduction in research and development expense in 2024. The reduction is primarily driven by
the disposal of the remaining Frankly SaaS assets on May 31, 2024, leading to a reduction in research and development headcount.

Depreciation
and amortization

Depreciation and amortization for the year ended December
31, 2024, was $3.2 million, in comparison to $1.9 million for the year ended December 31, 2023. The increase was primarily related to
our acquisitions of Faze and Engine as discussed above and the related long-lived assets and intangible assets acquired in connection
with these acquisitions.

19

Restructuring
charges

Restructuring charges for the year ended December
31, 2024, were $1.3 million, in comparison to $0.5 million for the year ended December 31, 2023. The increase was due 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