# EDGAR Filing Document

**Accession Number:** 0001714562
**File Stem:** 0001493152-25-022366
**Filing Date:** 2025-11
**Character Count:** 28088
**Document Hash:** d64048bd4c12c0e5e8edf953e2f83ef3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-25-022366.hdr.sgml**: 20251113

**ACCESSION NUMBER**: 0001493152-25-022366

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20251113

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251113

**DATE AS OF CHANGE**: 20251113

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** GameSquare Holdings, Inc.
- **CENTRAL INDEX KEY:** 0001714562
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-AMUSEMENT & RECREATION SERVICES [7900]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A6
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39389
- **FILM NUMBER:** 251479234

**BUSINESS ADDRESS:**
- **STREET 1:** 6775 COWBOYS WAY, STE. 1335
- **CITY:** FRISCO
- **STATE:** TX
- **ZIP:** 75034
- **BUSINESS PHONE:** 212-931-1200

**MAIL ADDRESS:**
- **STREET 1:** 6775 COWBOYS WAY, STE. 1335
- **CITY:** FRISCO
- **STATE:** TX
- **ZIP:** 75034

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Engine Gaming & Media, Inc.
- **DATE OF NAME CHANGE:** 20211019

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Engine Media Holdings, Inc.
- **DATE OF NAME CHANGE:** 20200818

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Torque Esports Corp.
- **DATE OF NAME CHANGE:** 20200102

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d)**

**of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **November 13, 2025**

**GameSquare Holdings, Inc.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-39389** | **99-1946435** |
| (State or other jurisdiction<br> of incorporation) | (Commission<br> File Number) | (IRS Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **6775 Cowboys Way, Ste. 1335**<br> **Frisco, Texas, USA** | **75034** |
| (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code: **(216) 464-6400**

**N/A**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | |
|:---|:---|
| Title of each class | Name of each exchange on which registered |
| **Common Stock, $0.0001 par value per share** **GAME** | **The Nasdaq Stock Market LLC** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 2.02. Results of Operations and Financial Condition.**

On November 13, 2025, GameSquare Holdings, Inc. (the "Company") issued a press release announcing its financial results for the quarter and the nine months ended September 30, 2025. A copy of the press release is attached as Exhibit 99.1 hereto and is incorporated by reference herein.

The information in Item 2.02 of this Current Report on Form 8-K and the Press Release attached hereto as Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

**Item 9.01 Financial Statements and Exhibits.**

*(d) Exhibits.*

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| 99.1 | [Press Release of GameSquare Holdings, Inc., dated November 13, 2025.](ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded with the Inline XBRL document). |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **GAMESQUARE HOLDINGS, INC.** | **GAMESQUARE HOLDINGS, INC.** |
|  | (Registrant) | (Registrant) |
| Date: November 13, 2025 | By: | */s/ Justin Kenna* |
|  | Name: | Justin Kenna |
|  | Title: | Chief Executive Officer and Director |

---

## Exhibit 99.1

**Exhibit 99.1**

**GameSquare Holdings Reports 2025 Third Quarter Results**

*Net income from continuing operations of $5.9 million in Q3 2025*

*Gross margin increased 20.0% sequentially to 49.4%* 

 

*Balance sheet at September 30, 2025, strongest in the Company's history with $81.5 million in DAT assets and cash, no debt and shareholders' equity of $78.7 million* 

 

*Management expects continued positive momentum in Q4 2025*

**November 13, 2025, FRISCO, TX** – GameSquare Holdings, Inc. (NASDAQ: GAME), ("GameSquare", or the "Company"), today announced financial results for the three- and nine-months ended September 30, 2025.

"2025 is a defining year for GameSquare and our third quarter results confirm that our strategy is working," stated Justin Kenna, CEO of GameSquare. "We are sharper, stronger, and more focused than ever as the actions we have taken over the past year have improved profitability, strengthened our balance sheet and positioned us with a differentiated, end-to-end platform built for scale."

"During the third quarter, we wound down Frankly Media, consolidated our technology businesses under Stream Hatchet, and acquired Click Management ("Click"). These actions have expanded GameSquare's profitability and strengthened our go forward operating platform. Click is already demonstrating its strategic and financial value by deepening our reach into creator-led brand partnerships, accelerating growth across our media and agency ecosystems, and unlocking new expansion opportunities. Combined with Zoned, Steam Hatchet, GameSquare Experiences, FaZe Clan Esports, and global media partnerships, we now operate one of the most comprehensive and integrated platforms in the industry."

"This quarter also marked a milestone with the launch of our digital asset treasury strategy. With the support of established onchain advisors and partners, we have built an institutional-grade, yield-generating asset strategy that enhances our balance sheet, introduces a compounding return engine, and creates strategic optionality that complements our core operating business. Importantly, this also enabled us to fund our initial share repurchase program, reflecting our commitment to driving shareholder value."

"GameSquare has never been in a stronger strategic, operational, or financial position. We have proactively streamlined our business, invested in high-growth areas, strengthened margins, and expanded our total addressable market. As we enter the next chapter of growth, we are doing so with momentum, a fortified balance sheet, and a scalable platform built to win in media, creators, gaming, and Web3. The progress we are making today sets the stage for durable growth, expanding profitability, and long-term value creation for our shareholders," concluded Mr. Kenna.

**<u>GameSquare's Treasury Management Assets at September 30, 2025:</u>**

● **Ethereum ("ETH") Assets**: The Company held 15,618 ETH, with an original cost basis of $55.5 million, almost all of which was in its onchain yield strategy with Dialectic, with an unrealized gain on ETH of $9.3 million in the third quarter.

● **NFT Holdings**: The Company owned eight CryptoPunks for a total value of $6.9 million, which the Company expects will begin contributing to its yield strategy in the fourth quarter.

● **Altcoin Assets**: The Company had $3.8 million of altcoins on its balance sheet at September 30, 2025, primarily in $Anime and $Rekt Coin.

● **Yield Strategy:** GameSquare's onchain yield strategy with Dialectic commenced August 1, 2025, and achieved a yield of $0.6 million for the last two months of the quarter.

● **Total DAT + Cash:** The Company had $81.5 million in ETH, NFT, Altcoin investments, interests in the Dialectic onchain yield strategy and cash, or $0.83 per share and no debt outstanding as of September 30, 2025.

● **Stock Repurchase:** On October 3, 2025, GameSquare announced its initial stock repurchase under its previously announced $5 million authorization. The Company repurchased 833,124 shares of its common stock for $599,148, representing an average price of approximately $0.72.

**<u>Reported results for the three months ended September 30, 2025, compared to September 30, 2024</u>**

● Revenue of $11.3 million, compared to $9.3 million

● Gross profit of $5.6 million, compared to $4.2 million

● Gross margin of 49.4%, compared to 45.3%

● Net income from continuing operations of $5.9 million, compared to a net loss from continuing operations of $3.9 million

● Net loss attributable to GameSquare of $0.8 million, compared to a net loss of $5.5 million

● Net loss attributable to GameSquare was 7.1% of revenue, versus 58.9% of revenue

● Adjusted EBITDA loss of $0.6 million, compared to a loss of $0.9 million

● Adjusted EBITDA loss was 5.3% of revenue, versus 9.5% of revenue

**<u>Proforma\* results for the three months ended September 30, 2025</u>**

● Revenue of $15.5 million

● Gross profit of $6.7 million

● Adjusted EBITDA loss of $0.2 million

\* Proforma financial results includes the results of Click for the full 2025 third quarter

**<u>Reported results for the nine months ended September 30, 2025, compared to September 30, 2024</u>**

● Revenue of $26.5 million, compared to $19.9 million

● Gross profit of $11.0 million, compared to $7.5 million

● Gross margin of 41.6%, compared to 37.6%

● Net loss from continuing operations of $1.8 million, compared to a net loss from continuing operations of $15.3 million

● Net loss attributable to GameSquare of $9.0 million, compared to a net loss of $22.4 million

● Net loss attributable to GameSquare was 33.8% of revenue, versus 112.2% of revenue

● Adjusted EBITDA loss of $6.3 million, compared to a loss of $8.8 million

● Adjusted EBITDA loss was 23.9% of revenue, versus 44.3% of revenue

**<u>Use of Non-GAAP Financial Measures</u>**

● This release includes measures that are not in accordance with U.S. generally accepted accounting principles ("Non-GAAP measures"). These Non-GAAP measures should be viewed in addition to, and not as a substitute for, the Company's reported GAAP results, and may be different from Non-GAAP measures used by other companies. In addition, these Non-GAAP measures are not based on any comprehensive set of accounting rules or principles. GameSquare's management uses these Non-GAAP measures for internal budgeting and forecasting purposes and to evaluate GameSquare's financial performance. GameSquare's management believes the presentation of these Non-GAAP measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. For further information regarding these Non-GAAP measures, please refer to the tables presenting reconciliations of our Non-GAAP results to our U.S. GAAP results and the "Management's use of Non-GAAP Measures" that accompany this press release.

**<u>Updated 2025 Outlook</u>**

The Company believes its operating and financial trajectory in the second half of 2025 will be significantly stronger, supported by the Company's digital asset treasury strategy, sales pipeline, the contribution of the September 11, 2025, Click Management acquisition, and the benefit of ongoing restructuring initiatives.

On a proforma basis, GameSquare continues to expect second half revenue of $36.8 million and adjusted EBITDA of $2.9 million.

**<u>Conference Call Details</u>**

Justin Kenna, CEO, Lou Schwartz, President, and Mike Munoz CFO are scheduled to host a conference call with the investment community. Analysts and interested investors can join the call via the details below:

Date: November 13, 2025

Time: 5:00 pm ET

Webcast: <u>https://event.choruscall.com/mediaframe/webcast.html?webcastid=pYFTHOrP</u>

**Corporate Contact**

Lou Schwartz, President

Phone: (216) 464-6400

Email: <u>ir@gamesquare.com</u>

**Investor Relations**

Andrew Berger

Phone: (216) 464-6400

Email: <u>ir@gamesquare.com</u>

**Media Relations**

Chelsey Northern / The Untold

Phone: (254) 855-4028

Email: <u>pr@gamesquare.com</u>

**About GameSquare Holdings, Inc.**

GameSquare (NASDAQ: GAME) is a cutting-edge media, entertainment, and technology company transforming how brands and publishers connect with Gen Z, Gen Alpha, and Millennial audiences. With a platform that spans award-winning creative services, advanced analytics, and FaZe Clan Esports, one of the most iconic gaming organizations, we operate one of the largest gaming media networks in North America. As a digital-native business, GameSquare provides brands with unparalleled access to world-class creators and talent, delivering authentic connections across gaming, esports, and youth culture. Complementing our operating strategy, GameSquare has developed an innovative treasury management program designed to generate yield and enhance capital efficiency, reinforcing our commitment to building a dynamic, high-performing media company at the intersection of culture, technology, and next-generation financial innovation.

To learn more, visit <u>www.gamesquare.com</u>.

**Forward-Looking Information**

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the Company's future performance, revenue, growth and profitability; and the Company's ability to execute on its current and future business plans. These forward-looking statements are provided only to provide information currently available to us and are not intended to serve as and must not be relied on by any investor as, a guarantee, assurance or definitive statement of fact or probability. Forward-looking statements are necessarily based upon a number of estimates and assumptions which include, but are not limited to: the Company's ability to grow its business and being able to execute on its business plans, the success of Company's vendors and partners in their provision of services to the Company, the Company being able to recognize and capitalize on opportunities and the Company continuing to attract qualified personnel to suppor its development requirements. These assumptions, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the Company's ability to achieve its objectives, the Company successfully executing its growth strategy, the ability of the Company to obtain future financings or complete offerings on acceptable terms, failure to leverage the Company's portfolio across entertainment and media platforms, dependence on the Company's key personnel and general business, economic, competitive, political and social uncertainties. These risk factors are not intended to represent a complete list of the factors that could affect the Company which are discussed in the Company's most recent MD&A. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. GameSquare assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

**GameSquare Holdings, Inc.**

**Consolidated Balance Sheets**

**(Unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **September 30<br> 2025** | **December 31,<br> 2024** |
| **Assets** |  |  |
| Cash | $6012219 | $12094950 |
| Restricted cash | 1475593 | 1054030 |
| Accounts receivable, net | 13268734 | 21330847 |
| Digital assets | 4020415 |  |
| Government remittances | 286973 | 119721 |
| Promissory note receivable, current | 202507 | 379405 |
| Prepaid expenses and other current assets | 954885 | 1493619 |
| &nbsp;&nbsp;&nbsp;Total current assets | 26221326 | 36472572 |
| Investment | 2332071 | 2199909 |
| Investment in ETH | 64539714 |  |
| Promissory note receivable, non-current | 8581770 | 9212785 |
| Property and equipment, net | 137269 | 303950 |
| Goodwill | 4220754 | 12704979 |
| Intangible assets, definite lived, net | 6678804 | 15265736 |
| Intangible assets, indefinite lived | 6906820 |  |
| Right-of-use assets | 1500731 | 2570516 |
| &nbsp;&nbsp;&nbsp;Total assets | $121119259 | $78730447 |
| **Liabilities and Shareholders' Equity** |  |  |
| Accounts payable | $18445123 | $27349372 |
| Accrued expenses and other current liabilities | 12089146 | 13694179 |
| Players liability account | 47535 | 47535 |
| Deferred revenue | 5239322 | 2726121 |
| Current portion of operating lease liability | 433390 | 748916 |
| Line of credit | (118945) | 3501457 |
| Convertible debt carried at fair value, current |  | 6481704 |
| Warrant liability | 7045 | 14314 |
| Deferred purchase consideration | 3996548 |  |
| Arbitration reserve | 164091 | 199374 |
| &nbsp;&nbsp;&nbsp;Total current liabilities | 40303255 | 54762972 |
| Convertible debt carried at fair value, non-current |  | 9908784 |
| Contingent purchase consideration, non-current | 807000 |  |
| Operating lease liability | 1265332 | 2054443 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 42375587 | 66726199 |
| Commitments and contingencies (Note 14) |  |  |
| Preferred stock ($0.0001 par value, 50,000,000 authorized, 3,433 and 0 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively) |  |  |
| Common stock ($0.0001 par value, 100,000,000 shares authorized, 98,380,767 and 32,635,995 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively) | 9838 | 3264 |
| Additional paid-in capital | 210411286 | 119438370 |
| Accumulated other comprehensive loss | (524003) | (208617) |
| Non-controlling interest |  | 14942287 |
| Accumulated deficit | (131153449) | (122171056) |
| &nbsp;&nbsp;&nbsp;Total shareholders' equity | 78743672 | 12004248 |
| &nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $121119259 | $78730447 |

---

**GameSquare Holdings, Inc.**

**Consolidated Statements of Operations and Comprehensive Loss** 

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended September 30,** | **Three months ended September 30,** | **Nine months ended September 30,** | **Nine months ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenue | $11315003 | $9306777 | $26542646 | $19930359 |
| Cost of revenue | 5722273 | 5091393 | 15500495 | 12439479 |
| Gross profit | 5592730 | 4215384 | 11042151 | 7490880 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 6170930 | 3744312 | 13766667 | 11806277 |
| &nbsp;&nbsp;&nbsp;Selling and marketing | 1464040 | 1196593 | 4188399 | 4116694 |
| &nbsp;&nbsp;&nbsp;Research and development | 519275 | 450637 | 1550378 | 1447954 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 271484 | 350324 | 727789 | 1025004 |
| &nbsp;&nbsp;&nbsp;Restructuring charges | (1535097) | 330167 | (814377) | 330167 |
| &nbsp;&nbsp;&nbsp;Other operating expenses | 1095258 | 1287223 | 2387823 | 3417687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 7985890 | 7359256 | 21806679 | 22143783 |
| Loss from continuing operations | (2393160) | (3143872) | (10764528) | (14652903) |
| Other income (expense), net: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income (expense) | 166831 | 178008 | 309733 | (17072) |
| &nbsp;&nbsp;&nbsp;Loss on debt extinguishment |  | (1032070) |  | (1032070) |
| &nbsp;&nbsp;&nbsp;Change in fair value of convertible debt carried at fair value | (38033) | (98937) | 289883 | 357822 |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrant liability | 19659 | 26482 | 7275 | 79382 |
| &nbsp;&nbsp;&nbsp;Arbitration settlement reserve | 45917 | 113583 | 35283 | 252208 |
| &nbsp;&nbsp;&nbsp;Other income (expense), net | 8145567 | 21267 | 8276426 | (246066) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense), net | 8339941 | (791667) | 8918600 | (605796) |
| Loss from continuing operations before income taxes | 5946781 | (3935539) | (1845928) | (15258699) |
| Income tax benefit | - | - | - | - |
| Net income (loss) from continuing operations | 5946781 | (3935539) | (1845928) | (15258699) |
| Net income (loss) from discontinued operations | (6755224) | (3528876) | (9154597) | (9469805) |
| Net loss | (808443) | (7464415) | (11000525) | (24728504) |
| Net loss attributable to non-controlling interest | - | 1979943 | 2018132 | 2369533 |
| Net loss attributable to attributable to GameSquare Holdings, Inc. | $(808443) | $(5484472) | $(8982393) | $(22358971) |
| Comprehensive loss, net of tax: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(808443) | $(7464415) | $(11000525) | $(24728504) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in foreign currency translation adjustment | 70071 | 360004 | (315386) | 373187 |
| &nbsp;&nbsp;&nbsp;Comprehensive loss | (738372) | (7104411) | (11315911) | (24355317) |
| &nbsp;&nbsp;&nbsp;Comprehensive loss attributable to non-controlling interest | - | 1979943 | 2018132 | 2369533 |
| Comprehensive loss | $(738372) | $(5124468) | $(9297779) | $(21985784) |
| Income (loss) per common share attributable to GameSquare Holdings, Inc. - basic and assuming dilution: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;From continuing operations | $0.07 | $(0.13) | $(0.03) | $(0.58) |
| &nbsp;&nbsp;&nbsp;From discontinued operations | (0.08) | (0.05) | (0.13) | (0.27) |
| Loss per common share attributable to GameSquare Holdings, Inc. - basic and assuming dilution | $(0.01) | $(0.18) | $(0.16) | $(0.85) |
| Weighted average common shares outstanding - basic and diluted | 87949202 | 31270253 | 54733322 | 26378453 |

---

**<u>Management's use of Non-GAAP Measures</u>**

This release 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.

*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. **(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended September 30,** | **Three months ended September 30,** | **Nine months ended September 30,** | **Nine months ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net loss | $(808443) | $(7464415) | $(11000525) | $(24728504) |
| &nbsp;&nbsp;&nbsp;Interest expense | (166831) | (178008) | (309733) | 17072 |
| &nbsp;&nbsp;&nbsp;Income tax benefit |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization and depreciation | 271484 | 350324 | 727789 | 1025004 |
| &nbsp;&nbsp;&nbsp;Share-based payments | 1871720 | 267117 | 1906334 | 1288484 |
| &nbsp;&nbsp;&nbsp;(Gain) loss on digital assets | (8060149) |  | (8060149) |  |
| &nbsp;&nbsp;&nbsp;Transaction costs | 1095258 | 1287223 | 2387823 | 3417687 |
| &nbsp;&nbsp;&nbsp;Arbitration settlement reserve | (45917) | (113583) | (35283) | (252208) |
| &nbsp;&nbsp;&nbsp;Restructuring costs | (1535097) | 330167 | (814377) | 330167 |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt |  | 1032070 |  | 1032070 |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrant liability | (19659) | (26482) | (7275) | (79382) |
| &nbsp;&nbsp;&nbsp;Change in fair value of convertible debt carried at fair value | 38033 | 98937 | (289883) | (357822) |
| &nbsp;&nbsp;&nbsp;Gain on disposition of subsidiary |  |  | (2721953) | (3009891) |
| &nbsp;&nbsp;&nbsp;Loss from discontinued operations | 6755224 | 3528876 | 11876550 | 12479696 |
| Adjusted EBITDA | $(604377) | $(887774) | $(6340682) | $(8837627) |

---