Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 257

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 257
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 initial
direct costs for any expired or existing leases. For lease terms of twelve months or fewer, a lessee is permitted to make an accounting
policy election not to recognize lease assets and liabilities. The primary impact of the adoption is the initial recognition of $600,270
of operating lease right-of-use assets and operating lease liabilities.

If any of the following criteria are met, the Company classifies
the lease as a finance lease:

| ● | The lease transfers ownership of the underlying asset to 
 the lessee by the end of the lease term;                 |

| ● | The lease grants the lessee an option to purchase the underlying 
 asset that the Company is reasonably certain to exercise;        |

| ● | The lease term is for 75% or more of the remaining economic                                                                        
 life of the underlying asset, unless the commencement date falls within the last 25% of the economic life of the underlying asset; |

| ● | The present value of the sum of the lease payments equals    
 or exceeds 90% of the fair value of the underlying asset; or |

| ● | The underlying asset is of such a specialized nature that                             
 it is expected to have no alternative use to the lessor at the end of the lease term. |

Leases that do not meet any of the above criteria are accounted
for as operating leases.

The Company combines lease and non-lease components
in its contracts under Topic 842, when permissible.

Finance and operating lease right-of-use (“ROU”)
assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term.
Since the implicit rate for the Company’s leases is not readily determinable, the Company uses its incremental borrowing rate based
on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate
is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, 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