Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 329

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 329
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, with the assistance of a third-party appraiser, assessed the fair value of the 100% equity interest, and identifiable intangible
assets acquired, in Starry through using income approach based on a number of factors including in the valuations from the third-party
appraiser. The significant assumptions used by the Company include financial forecast and discount rate.

The
fair value of the licenses was estimated using a relief-from-royalty method. This method calculates fair value by assuming that if the
license were to be acquired from a third-party owner, a royalty rate on revenue would be charged for the privilege of using the asset.
Therefore, the fair value of the licenses represents the present value of the after-tax royalties saved as a result of owning the legal
right to utilize the licenses.

The
goodwill, which is not deductible for income tax purposes, is primarily attributed to the enhanced brand recognition expected from integrating
Starry’s operations. The acquisition of Starry is strategically aimed at leveraging its expertise in jewelry and accessories retail.
By collaborating with Starry, the Company plans to create unique, game character-inspired jewelry and accessories. This collaboration
will not only promote and market certain games but also expand the Company’s customer base. The synergy between the gaming operations
and the jewelry business is expected to increase brand visibility and appeal to a broader demographic, thereby enhancing brand recognition.

— Acquisition of Martiangear

On
July 25, 2023, the Company through its subsidiary, Titan Digital, entered into a sale and purchase agreements (“SPA2”)
with two third parties (“Vendors”) to acquire 100% equity interest of Martiangear. Martiangear was incorporated in Singapore
on September 24, 2020, and its principal activities include distribution of gaming desks and chairs. The acquisition of Martiangear
was completed on September 4, 2023 (“Acquisition Date”). Pursuant to the SPA2, The Company is obligated to remit an
aggregate total of $835,348 consideration in fair value which consist of following three tranches to the Vendors.

| ● | Tranche 1 — 53,711 of the Company’s ordinary                                                 
 shares (“Consideration Share”) to the Vendors on the Acquisition Date. In the                
 event that the Company fail to become a listed company within 24 months from the Completion  
 Date, the Company irrevocably undertakes to purchase all of the Consideration Share from     
 the Vendors for a cash consideration of $700