Company: GCL
Filing Date: 2025-07-31
Form Type: 424B3
Source: 0001213900-25-070094
Chunk: 229

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 424B3
Chunk 229
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feature was determined to be derivative liabilities under ASC 815-40, as it is not considered indexed to the Company’s own stock
due to variable settlement provisions.

The Top-Up Shares
liabilities were measured at fair value on the conversion date and at each subsequent reporting date until settlement, with changes
in fair value recognized in the consolidated statements of operations and comprehensive income (loss). The fair value of the Top-Up
Shares liability is determined using unobservable inputs and a Monte Carlo simulation model. Key assumptions include the
Company’s stock price volatility, the price floor, the expected holding period, and the risk-free discount rate.

As of February 12, 2025,
immediately prior to the conversion upon completion of the Business Combination, the fair value of the convertible notes was allocated
to (i) conversion feature of $22,377,734, (ii) bonus share component of $2,685,327, and (iii) top-up share feature of $2,707,836. As of
March 31, 2025, the fair value of the top-up share feature was remeasured to $3,086,519. The fair value of the conversion and bonus share
components was estimated using a scenario-based probability-weighted approach, while the top-up share feature was valued using a Monte
Carlo simulation model based on 10,000 simulated price paths. Valuation assumptions included stock prices of $3.05 and $1.95 as of February
12 and March 31, 2025, respectively, a volatility assumption of 60%, risk-free rates of 4.4% and 3.9%, and an expected holding period
of three years. The fair value measurement of the Top-Up Shares represents Level 3 inputs under the fair value hierarchy due to the use
of unobservable inputs.

Note 17 — Deferred investment consideration payable

|                                           |     | March 31, 
 2025      |           |     | March 31, 
 2024      |   |
|:------------------------------------------|:----|:----------|----------:|:----|:----------|:--|
| Deferred investment consideration payable |     | $         | 7,500,000 |     | $         | - |

The balance of contingent
investment consideration payable relates to the Company’s investment in Nekcom of $7,500,000 in share consideration, for which the
corresponding ordinary shares have been issued and placed in escrow.