Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 316

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 316
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An
uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained
in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that
is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test,
no tax benefit is recorded. No penalties and interest were incurred related to underpayment of income tax for the six months ended September 30,
2024 and 2023.

The
Company recognizes interest and penalties related to unrecognized tax benefits, if any, on the other expense line in the accompanying
consolidated statement of income. Accrued interest and penalties are included on the other payables and accrued liabilities line in the
consolidated balance sheets.

The
Company conducts much of its business activities in Singapore, Malaysia, and Hong Kong and is subject to taxation in these jurisdictions.
As a result of its business activities, the Company’s subsidiaries file separate tax returns that are subject to examination by
the foreign tax authorities. As of September 30, 2024, the tax returns for the Company’s Singapore entities from 2021 through
2024 remain open for statutory examination by the Singapore tax authorities. Similarly, as of September 30, 2024, the tax returns
for the Company’s Hong Kong entities from 2019 through 2024 remain open for statutory examination by the tax authorities in Hong
Kong, respectively. In addition, as of September 30, 2024, the tax returns for the Company’s Malaysia entity from 2020 through
2024 remain open for statutory examination by the tax authorities in Malaysia.

Comprehensive
loss consists of two components, namely net income and other comprehensive loss. Other comprehensive loss refers to revenue,
expenses, gains and losses that under U.S. GAAP are recorded as an element of shareholders’ equity but are excluded from net
income (loss). Other comprehensive loss includes items such as results of foreign currency translation adjustment.

The
Company computes earnings or loss per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260
requires companies to present basic and diluted EPS. Basic EPS is measured as net income attributable to the Company divided by the weighted
average ordinary share outstanding for the period. Diluted EPS presents the diluted effect on a per share basis of the potential ordinary
shares (e.g., convertible