Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 86

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 86
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 the Yorkville CD. The loss is presented
net of the $0.3 million gain on extinguishment of the King Street CD which was paid down in full on July 10, 2024.

Change
in fair value of convertible debt carried at fair value

Change
in fair value of convertible debt income (expense) for the three months ended September 30, 2025, was $(38) thousand, in comparison
to $(99) thousand for the same period in 2024. The variance between the periods was not significant.

38

Change
in fair value of warrant liability

Change
in fair value of warrant liability income (expense) for the three months ended September 30, 2025, was $20 thousand, in comparison
to $26 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 September 30, 2025, was $46 thousand, in comparison to $114 thousand
for the same period in 2024. The variance between the periods was not significant.

Other
income (expense), net

Other income (expense), net for the three months ended September 30, 2025, was $8.1 million, in comparison to $21
thousand for the same period in 2024. The increase in income was due to the launch of our digital asset treasury in the third quarter
of 2025. The line item is comprised of realized and change in unrealized gains (losses) on all of our crypto holdings, including our investment
in ETH fund. The gain is primarily driven by the change in unrealized gain of $9.6 million from our investment in ETH fund. This was partially
offset by change in unrealized losses on digital assets, Anime and Rekt token holdings during the period.

Net
income (loss) from discontinued operations

Net income (loss) from discontinued operations for the three months ended September 30, 2025, was $(6.8) million,
in comparison to $(3.5) million for the same period in 2024. The historical results of Frankly, FaZe Media and Complexity are included
in discontinued operations.

Management’s
use of Non-GAAP Measures

This
Report contains certain financial performance measures, including “EBITDA” and “Adjusted EBITDA,” that are
not recognized under accounting