Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 311

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 311
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 based upon forecasts for future demand and market conditions. For the years ended March 31, 2025
and 2024, $138,935 and $47,134 of inventories allowances were recorded, respectively.

Investment
in convertible note

The Company holds an investment in
convertible notes with a fair value of $3,502,200 as of March 31, 2025 and 2024, respectively. The investment is included in current
Other receivables and other assets, net and non-current Other receivables and other assets, net in the Consolidated Balance Sheets as
of March 31, 2025 and 2024, respectively. The investment is recorded at fair value under the fair value option in accordance with ASC
825-10, Fair Value Option, and ASC 325-20, Investments-Other.

The convertible notes were issued by
an unrelated privately held company and earn fixed interest at 6% per annum. The convertible notes may be converted in part or in whole
at the Company’s discretion within 36 months from the issuance date. The notes mature on December 29, 2025. The Company is not
obliged to convert the convertible notes and may elect to redeem them upon maturity. As of March 31, 2025, no such conversion has taken
place. For the years ended March 31, 2025 and 2024, the Company recognised interest income of $82,800 and $82,220, respectively, based
on the interest rate of the convertible notes.

By electing the fair value option,
the embedded conversion feature is not separately bifurcated or accounted for as a derivative. Instead, the fair value of the instrument
as a whole captures the economic effect the embedded features.

Changes in fair value are recognized
in earnings in the period in which they occur. Changes in fair value were not material for the year ended March 31, 2025. For the year
ended March 31, 2024, the Company recognized net unrealized gains of $2,155,200 related to the convertible notes, which is included in
Other income, net in the Consolidated Statements of Comprehensive Income.

The Company believes this accounting
treatment best reflects the economic substance of the investment and aligns with the way the instrument is managed and evaluated internally.

The aggregate principal amount of the
convertible notes was $1,341,000 and $1,347,000 as of March