Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 310

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 310
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of the business combination in accordance with ASC 805-10-55-28. The Company determined the fair value of the contingent consideration
for acquisition as the Company has the obligation to pay cash or issuing shares to settle the contingent consideration upon 2Game’s
achievement of certain performance milestones.

In
accordance with ASC 815-40 “Derivatives and Hedging”, the Company determined that the contingent consideration for acquisition
should classified as a liability as it does not consider indexed to the Company’s stock. As a result, the contingent consideration
for acquisition shall be measured initially, and subsequently at fair value on each reporting date. The Company will continue to adjust
the carrying value of the contingent consideration for acquisitions until contingency is finally determined. Any changes in fair value
will be recorded as a gain or loss in the statements of operations and comprehensive loss.

Contingent
consideration for acquisition was valued at the time of acquisitions and each of the financial statement date, using unobservable inputs
and discounted cash flow methodology. The determination of the fair value is based on discounted cash flows, the key assumptions include
the probability of meeting each performance target and the discount factor.

The
Company accounts for its ordinary shares subject to possible redemption in accordance with the guidance in ASC Topic 480 “Distinguishing
Liabilities from Equity”, where equity interests are determined to be conditionally redeemable upon the occurrence of certain events
that are not solely within the control of the Group, and upon such event, the shares would become redeemable at the option of the holders,
they are classified as mezzanine equity (temporary equity). As of September 30, 2024 and March 31, 2024, ordinary shares subject
to possible redemption are 53,711 shares as temporary equity, outside of the shareholders’ equity section of the Company’s
consolidated balance sheet. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value
of redeemable Common Stock to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying
amount of redeemable ordinary shares are affected by charges against additional paid-in capital or accumulated deficit if additional
paid-in capital equals to zero. On November 22, 2023, 115,000 ordinary shares were fully redeemed for cash consideration of $ 163,905.

The
Company follows the revenue accounting requirements of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from
Contracts with Customers (