Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 24

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 24
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 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.

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,
(viii) gains and losses from discontinued operations, and (ix) Net income (loss) attributable to non-controlling interest.

Reconciliation
of Non-GAAP Measures

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

    Three months ended June 30,  
    Six months ended June 30, 

    2025  
    2024  
    2025  
    2024 
  
    Net loss 
    $(3,018,346) 
    $(12,003,141) 
    $(10,192,082) 
    $(17,264,089)
  
    Interest expense 
     (44,590) 
     192,257  
     4,968  
     627,385 
  
    Income tax benefit 
     -  
     -  
     -  
     - 
  
    Amortization and depreciation 
     302,360  
     564,346  
     558,825  
     1,182,368 
  
    Share-based payments 
     5,616