Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 222

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 222
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 lifespan of the gaming ecosystem 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 income (loss). For
the years ended March 31, 2025, 2024, and 2023, impairment losses of $11,688, $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.

The Company accounts for
equity investments without a readily determinable fair value under ASC 321, Investments - Equity Securities. Such investments are initially
measured at cost and subsequently adjusted for observable price changes and impairments, if applicable. Impairment assessments are conducted
at each reporting date, and any impairment losses are recognized in the consolidated statement of operations and comprehensive income
(loss). Equity investments are evaluated to determine whether they meet the definition of in-substance common stock under ASC 323, Investments
- Equity Method and Joint Ventures. Investments that fail to meet this definition are not accounted for under the equity method. Instead,
they are classified and measured in accordance with ASC 321.

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, or more often when circumstances indicate
impairment may have occurred. Goodwill is carried at cost less