Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 319

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 319
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000 |   |
| Change in fair value of contingent consideration for acquisition |     |                   |  (270,615 | ) |
| Ending balance as of September 30, 2024 (unaudited)              |     | $                 | 3,426,385 |   |

<div align='center'>F-74

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

The
Company accounts for leases in accordance with ASU 2016-02, “Leases” (Topic 842).

If
any of the following criteria are met, the Company classifies the lease as a finance lease:

| ● | The                                                                                           
 lease transfers ownership of the underlying asset to the lessee by the end of the lease term; |

| ● | The                                                                                               
 lease grants the lessee an option to purchase the underlying asset that the Company is reasonably 
 certain to exercise;                                                                              |

| ● | The                                                                                           
 lease term is for 75% or more of the remaining economic life of the underlying asset, unless  
 the commencement date falls within the last 25% of the economic life of the underlying asset; |

| ● | The                                                                                       
 present value of the sum of the lease payments equals or exceeds 90% of the fair value of 
 the underlying asset; or                                                                  |

| ● | The                                                                                         
 underlying asset is of such a specialized nature that it is expected to have no alternative 
 use to the lessor at the end of the lease term.                                             |

Leases that do not meet any of the above criteria are accounted for as operating leases.

The Company combines lease and non-lease components in its contracts under Topic 842, when permissible.

Finance
and operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at the commencement date based on the
present value of lease payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable,
the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present
value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized
basis, an amount equal to the lease payments, in a similar economic environment and over a similar term.

Lease
terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease