Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 171

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 171
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CL BVI and GCL Global had completed a sequential two-step transaction involving (a) sale by GCL BVI of all its equity interests
in GCL Global SG to GCL Global in return for GCL Global shares being issued to the GCL Shareholders (defined below), resulting in (i) GCL
Global SG becoming a wholly-owned subsidiary of GCL Global; and (ii) GCL Shareholders holding all issued and outstanding shares in
GCL Global; and (b) sale by GCL BVI shareholders holding a total of 99.8% of the total outstanding shares of GCL BVI (“ GCL
Shareholders”) of their equity interests in GCL BVI to GCL Global, resulting in GCL BVI becoming a 99.8%-owned subsidiary of GCL
Global (the “ Reorganization”).

Before and after the Reorganizations,
GCL Global, together with its subsidiaries (as indicated above), is effectively controlled by the major shareholders, and therefore the
Reorganization is considered as a recapitalization of entities under common control in accordance with Accounting Standards Codification
(“ ASC”) 805-50-25. The consolidation of the Company and its subsidiaries have been accounted for at historical cost and prepared
on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying
consolidated financial statements in accordance with ASC 805-50-45-5.

F-7

GCL GLOBAL HOLDINGS LTD
AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

- Merger and reverse
recapitalization

As
described above and further discussed in Note 3, the Business Combination was consummated on February 13, 2025. As a result, RFAC and
GCL Global, including its subsidiaries, became wholly-owned subsidiaries of the Company.

The
Business Combination was accounted for as a “reverse recapitalization”. Under this method of accounting, RFAC was treated
as the “acquired” company for financial reporting purposes. Accordingly, the Business Combination was treated as the equivalent
of GCL Global issuing shares for the net assets of RFAC, accompanied by a recapitalization. The net assets of RFAC are stated at historical
costs. No goodwill or other intangible assets are recorded.

Upon
closing of the Business Combination, PubCo and its subsidiaries are hereafter referred as the Company.

The