Company: GCL
Filing Date: 2025-09-04
Form Type: F-1
Source: 0001213900-25-084489
Chunk: 214

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-04
Form: F-1
Chunk 214
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, an amount
equal to the lease payments, in a similar economic environment and over a similar term.

Lease terms used to calculate
the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as the Company does
not have reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life
of its finance or operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the
short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months
or less. Its leases generally do not provide a residual guarantee.

The finance or operating
lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term for operating
lease. Meanwhile, the Company recognizes the finance leases ROU assets and interest on an amortized cost basis. The amortization of finance
ROU assets is recognized on straight-line basis as amortization expense, while the lease liability is increased to reflect interest on
the liability and decreased to reflect the lease payments made during the period. Interest expense on the lease liability is determined
each period during the lease term.

The Company reviews the
impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability
of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be
recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected
undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating
lease liabilities in any tested asset group and include the associated operating lease payments in the undiscounted future pre-tax cash
flows. For the years ended March 31, 2025, 2024, and 2023, the Company did not recognize impairment loss on its finance and operating
lease ROU assets.

F-24 GCL GLOBAL HOLDINGS LTD AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Related parties The Company identifies related parties, accounts for and discloses related party transactions in accordance with ASC 850, “Related Party Disclosures” and other relevant ASC standards. Corporations or individual parties are considered to be related if they have the ability, directly or indirectly, to control the