Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 241

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 241
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 in which the console game codes operate.

If the fair market value of an indefinite-lived
intangible asset is determined to be lower than its carrying value at any point during the reporting period, an impairment loss equal
to the difference is recognized in the consolidated statements of operations and comprehensive (loss) income. For the years ended March
31, 2024, and 2023, impairment losses of $500,684 and nil, respectively, were recorded against indefinite-lived intangible assets.

Definite-lived intangible assets consisted primarily
of customer relationships, trademark and license. The estimated useful life and amortization methodology of intangible assets are determined
based on the period in which they are expected to contribute directly to cash flows in accordance with ASC Topic 350 “Intangibles — Goodwill
and Other”. Intangible assets that are determined to have a definite life are amortized over the life of the asset.

Definite-lived intangible assets are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination
of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition.
Measurement of any impairment loss for identifiable intangible assets is based on the amount by which the carrying amount of the assets
exceeds its fair value determined by using a discounted cash flow model.

Goodwill represents the excess of the consideration
paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiaries at the date of acquisition. Goodwill
is not amortized and is tested for impairment at least annually, more often when circumstances indicate impairment may have occurred.
Goodwill is carried at cost less accumulated impairment losses. If impairment exists, goodwill is immediately written off to its fair
value and the loss is recognized in the consolidated statements of operations and comprehensive loss. Impairment losses on goodwill are
not reversed.

The Company reviews the carrying value of intangible
assets not subject to amortization, including goodwill, to determine whether impairment may exist annually or more frequently if events
and circumstances indicate that it is more likely than not that an impairment has occurred. Management has determined that the Company
has two reporting unit within the entity at which goodwill is monitored for internal management purposes.

The table below summarizes the changes in the carrying amount
of goodwill for each reporting unit:

| Balance at March 31, 2022 |     | Console 
 game    |         — |     | Game Publishing