Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 234

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 234
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 Note 3)                                                                                          |

<div align='center'>F-22

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

| (2) | On July 14, 2023, Starlight was dissolved due to cease operation since September 2021. |

| (3) | On September 4, 2023, Titan Digital acquired 100% equity interest of Martiangear from two third-party for cash consideration 
 of $148,000 and share consideration consisted of issuance of 53,711 ordinary shares by GCL BVI. (see Note 3)                 |

Note 2 — Summary of significant accounting policies

The consolidated financial statements have been
prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) pursuant
to the rules and regulations of the Securities Exchange Commission (“SEC”).

The consolidated financial statements include the
financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been
eliminated upon consolidation.

A subsidiary is an entity in which the Company,
directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies,
to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.

The preparation of the consolidated financial statements
in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts
of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated
financial statements include lease classification and liabilities, right-of-use assets, determinations of the useful lives and valuation
of long-lived assets, estimates of allowances for doubtful accounts, reserve for excess and obsolete inventory, estimates of impairment
of long-lived assets and goodwill, valuation of deferred tax assets, other provisions and contingencies, contingent consideration for
acquisition, and estimated fair value used in business acquisitions. Actual results could differ from these estimates, and as such, differences
may be material to the consolidated financial statements.

<div align='center'>F-23

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

Transactions denominated in currencies other than
the functional currency