Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 225

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 225
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 Each console game code grants single
access right to the user and is individually identified at cost upon purchase from its vendor.

Each console game code is
defined as an intangible asset, due to its lack of physical form. The useful life of an intangible asset should be considered indefinite
if no legal, regulatory, contractual, competitive, economic, or other factors limit its useful life to the reporting entity in accordance
with ASC 350-30-35-4. Consequently, each console game code is recorded at cost on the Company’s consolidated balance sheet and
is not subject to amortization. Instead, the cost of each game code will be transferred to cost of goods sold upon the sale of each individual
code. Additionally, the remaining balance of the console game codes will continue to generate cash flows from sales activities until
the last code is sold, with the total balance and the number of consol game codes decreasing as individual codes are sold.

Impairment testing for indefinite-lived
intangible assets is conducted on both an interim and annual basis to assess whether the carrying value of an individual asset exceeds
its fair value. When the carrying value exceeds fair value, the carrying amount is reduced to the fair value. The assessment for impairment
incorporates a review of external factors, including current market prices for console game codes, market demand trends, and market competition.
Additionally, the evaluation considers the long-term viability of the console game codes, factoring in elements such as platform support
and the lifespan of the gaming ecosystem in which the console game codes operate.

If the fair market value
of an indefinite-lived intangible asset is determined to be lower than its carrying value at any point during the reporting period, an
impairment loss equal to the difference is recognized in the consolidated statements of operations and comprehensive income (loss). For
the years ended March 31, 2025, 2024, and 2023, impairment losses of $11,688, $500,684 and nil, respectively, were recorded against indefinite-lived
intangible assets.

Definite-lived intangible
assets consisted primarily of customer relationships, trademark and license. The estimated useful life and amortization methodology of
intangible assets are determined based on the period in which they are expected to contribute directly to cash flows in accordance with
ASC Topic 350 “Intangibles — Goodwill and Other”. Intangible assets that are determined to have a definite life are
amortized over the life of the asset.

Definite-lived intangible