Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 308

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 308
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 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
loss. For the six months ended September 30, 2024, and 2023, impairment losses of nil and $4,143, respectively, were recorded against
indefinite-lived intangible assets.

<div align='center'>F-66

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

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 assets are reviewed for impairment whenever events