Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 263

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 263
---
 value of the 100% equity interest, and identifiable intangible assets acquired, in Starry through using income
approach based on a number of factors including in the valuations from the third-party appraiser. The significant assumption being used
by the Company includes financial forecast and discount rate. Acquisition-related costs incurred for the acquisitions are not material
and have been expensed as incurred in general and administrative expense.

The fair value of the licenses was estimated using
a relief-from-royalty method. This method calculates fair value by assuming that if the license were to be acquired from a third-party
owner, a royalty rate on revenue would be charged for the privilege of using the asset. Therefore, the fair value of the licenses represents
the present value of the after-tax royalties saved as a result of owning the legal right to utilize the licenses.

The goodwill, which is not deductible for income
tax purposes, is primarily attributed to the enhanced brand recognition expected from integrating Starry’s operations. The acquisition
of Starry is strategically aimed at leveraging its expertise in jewelry and accessories retail. By collaborating with Starry, the Company
plans to create unique, game character-inspired jewelry and accessories. This collaboration will not only promote and market certain games
but also expand the Company’s customer base. The synergy between the gaming operations and the jewelry business is expected to increase
brand visibility and appeal to a broader demographic, thereby enhancing brand recognition.

— Acquisition of Martiangear

On July 25, 2023, the Company through its subsidiary,
Titan Digital, entered into a sale and purchase agreements (“SPA2”) with two third parties (“Vendors”) to acquire
100% equity interest of Martiangear. Martiangear was incorporated in Singapore on September 24, 2020, and its principal activities
include distribution of gaming desks and chairs. The acquisition of Martiangear was completed on September 4, 2023 (“Acquisition
Date”). Pursuant to the SPA2, The Company is obligated to remit an aggregate total of $835,348 consideration in fair value which
consist of following three tranches to the Vendors.

| ● | Tranche 1 — 53,711 of the Company’s                                                                                                       
 ordinary shares (“Consideration Share”) to the Vendors on the Acquisition Date. In the event that the Company fail to become              
 a listed company within 24 months from the Completion Date, the Company irrevocably undertakes to purchase all of the Consideration