Company: GCL
Filing Date: 2025-09-04
Form Type: F-1
Source: 0001213900-25-084489
Chunk: 259

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-04
Form: F-1
Chunk 259
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 receivable and other receivables. These assets are subjected to credit evaluations. An allowance has been made for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment. F-51 GCL GLOBAL HOLDINGS LTD AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 22 — Leases

As of March 31, 2025 and
2024, the Company has engaged in multiple offices and warehouse leases which were classified as operating leases. In addition, the Company
engaged in a few automobiles’ leases under finance lease agreements.

The Company occupies various
offices under operating lease agreements with a term shorter than twelve months which it elected not to recognize lease assets and lease
liabilities under ASC 842. Instead, the Company recognized the lease payments in profit or loss on a straight-line basis over the lease
term and variable lease payments in the period in which the obligation for those payments is incurred.

The Company’s lease
agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company recognized lease
expense on a straight-line basis over the lease term for operating lease. Meanwhile, the Company recognized the finance leases ROU assets
and interest on an amortized cost basis.

The amortization of finance
ROU assets is recognized on straight-line basis as amortization expense, while the lease liability is increased to reflect interest on
the liability and decreased to reflect the lease payments made during the period.

Operating and finance lease expenses consist of the following:

|                               |     |                                     |     | For the Years Ended March 31, |           |     |      |         |     |      |         |
|                               |     | Classification                      |     |                          2025 |           |     | 2024 |         |     | 2023 |         |
| Operating lease cost          |     |                                     |     |                               |           |     |      |         |     |      |         |
| Lease expenses                |     | General and administrative          |     |                               |   879,255 |     |      | 866,481 |     |      | 675,655 |
| Finance lease cost            |     |                                     |     |                               |           |     |      |         |     |      |         |
| Amortization of leased asset  |     | General and administrative          |     |                               |   113,207 |     |      |