Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 262

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 262
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     |                  | (23,896 | ) |
| Deferred tax liability      |     |                  | (23,034 | ) |
| Total liabilities           |     |                  | (56,726 | ) |
| Total net assets of Starry  |     |                  | 295,673 |   |
| Goodwill                    |     | $                | 268,873 |   |

The purchase price was allocated to the identifiable
intangible assets acquired and liabilities assumed based on their acquisition date estimated fair values. The identifiable intangible
assets principally included licenses, with estimated useful lives of 1.0 years based on the expected future economic benefit of the
assets and are being amortized over the estimated useful life in proportion to the economic benefits consumed using the straight-line
method.

The Company, 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 assumption being used
by the Company includes financial forecast and discount rate. Acquisition-related costs incurred for the acquisitions are not material
and have been expensed as incurred in general and administrative expense.

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