Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 244

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 244
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 undiscounted future cash flows the
assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flows expected to result from
the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the assets.
If an impairment loss is identified, the Company will reduce the carrying amount of the asset to its estimated fair value based on a discounted
cash flows approach, or, when available and appropriate, comparable market values. As of March 31, 2024 and 2023, no impairment of
long-lived assets was recognized.

In connection with the business combination set
forth in Note 3, the Company recognized contingent consideration for acquisition upon completion of the business combination in accordance
with ASC 805-10-55-28. The Company determined the fair value of the contingent consideration for acquisition as the Company has the obligation
to pay cash or issuing shares to settle the contingent consideration upon 2Game’s achievement of certain performance milestones.

In accordance with ASC 815-40 “Derivatives
and Hedging”, the Company determined that the contingent consideration for acquisition should classified as a liability as it does
not consider indexed to the Company’s stock. As a result, the contingent consideration for acquisition shall be measured initially,
and subsequently at fair value on each reporting date. The Company will continue to adjust the carrying value of the contingent consideration
for acquisitions until contingency is finally determined. Any changes in fair value will be recorded as a gain or loss in the statements
of operations and comprehensive loss.

<div align='center'>F-28

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

Contingent consideration for acquisition was valued
at the time of acquisitions and each of the financial statement date, using unobservable inputs and undiscounted cash flow methodology.
The determination of the fair value is based on discounted cash flows, the key assumptions take into consideration the probability of
meeting each performance target and the discount factor.

The Company accounts for its ordinary shares subject
to possible redemption in accordance with the guidance in ASC Topic 480 “Distinguishing Liabilities from Equity”, where equity
interests are determined to be conditionally redeemable upon the occurrence of certain events that are not solely within the control of
the Group, and upon such event, the shares would become redeemable at the option of the holders, they are classified as mezzanine equity
(temporary