Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 164

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 164
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 fact that
it was not considered indexed to our own stock. Accordingly, we accounted for the Top-Up Share provision as a standalone derivative liability,
which is measured at fair value upon initial recognition and remeasured at each reporting date until settlement or expiration. Changes
in fair value are recognized in our consolidated statements of operations and comprehensive income (loss).

The Top-Up Share liability
was valued as of February 12, 2025 and March 31, 2025, using a Monte Carlo simulation model based on unobservable inputs. The fair value
measurement incorporated key assumptions, including our stock price, expected volatility, holding period, and the risk-free interest
rate. As the conversion date occurred shortly before our March 31, 2025 reporting date and no material changes in valuation inputs were
identified, we did not record a significant change in fair value between the two measurement dates. The Top-Up Share liability was recorded
at approximately $2.7 million as of the conversion date and $3.1 million as of March 31, 2025.

Goodwill impairment

We perform annual goodwill
impairment test by comparing the fair value of a reporting unit with its carrying amount. For the years ended March 31, 2025 and 2023,
management evaluated the recoverability of goodwill by performing qualitative assessment on its reporting units and determined that it
is less likely than not that the fair value of the reporting unit is less than its carrying amount, and therefore, no impairment loss
on goodwill was recognized for the year ended March 31, 2025 and 2023. For the years ended March 31, 2024, management evaluated the recoverability
of goodwill by comparing the fair value of a reporting unit with its carrying amount. We had engaged a third-party appraiser to assess
the fair value of the game distribution reporting unit by applying income approach which considers the present value of the game distribution
reporting unit’s future after-tax cash flows, discounting them to present value using a 13.0% discount rate. As a result, the fair
value of the game distributing reporting unit’s fair value exceeds its carrying value, and therefore, no impairment loss on goodwill
was recognized for the year ended March 31, 2024.

Recent Accounting Pronouncements

See Note 2 of the notes
to the consolidated financial statements included elsewhere in this prospectus for a discussion of recently issued accounting standards.

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BAN LEONG MANAGEMENT’S