Company: GCL
Filing Date: 2025-09-04
Form Type: F-1
Source: 0001213900-25-084489
Chunk: 248

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-04
Form: F-1
Chunk 248
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22, 2023, 466,164ordinary shares subject to possible redemption in temporary equity were fully redeemed for cash consideration of $ 163,905. On February 13, 2025, 217,724ordinary shares were reclassified from mezzanine equity to permanent equity in connection with the settlement of the Tranche 1share consideration related to the acquisition of Martiangear (see Note 4). Settlement of Contingent Consideration from 2Game Acquisition On October 1, 2023, GCL Global issued shares to the individuals to settle tranche 3 of the contingent consideration in connection with the 2Game acquisition and such shares were exchanged for 82,696ordinary shares of the Company at the closing of the Business Combination. (See Note 4). F-44 GCL GLOBAL HOLDINGS LTD AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At the closing of the Business
Combination, the Company collectively issued additional ordinary shares of to the individuals to settle tranche 2 of the contingent
consideration in connection with the 2Game acquisition. (See Note 4).

Conversion of convertible notes

On February 13, 2025, convertible
notes in the aggregate principal amount of $ were converted into ordinary shares of the Company. In addition,
ordinary shares of the Company were issued and held in an escrow account for three years as Bonus Shares (See Note 16).

Stock based compensation

On November 8, 2022, the
Company entered into two separate SPAC listing consultancy agreements (collectively, the “Consultancy Agreements”) with two
third-party consultants (the “Consultants”) to assist in facilitating the Business Combination. Pursuant to the Consultancy
Agreements, the Company agreed to compensate the Consultants an aggregate amount of $, payable, at the sole discretion of the
Company, in either cash or equity upon the closing of the Business Combination. On February 13, 2025, upon the closing of the Business
Combination, the Company elected to settle the obligation by issuing an aggregate of ordinary shares to the Consultants.

Because the services provided
by the Consultants were directly related to the Business Combination and contingent upon its successful closing, the Company determined
that the associated stock-based compensation should be accounted for as a direct and incremental cost of the transaction. Accordingly,
the fair value of the shares issued was recorded as a reduction to additional paid-in capital in accordance with ASC 340-10-S