Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 281

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 281
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='center'>F-44

GCL GLOBAL HOLDINGS LTD AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

At the closing of the Business
Combination, the Company collectively issued additional ordinary shares of 1,059,628 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 $33,025,000 were converted into 7,338,887 ordinary shares of the Company. In addition,
2,201,665 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 $20,000,000, 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 2,000,000 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-S99-1, “Expenses
of Offering.”

Reverse Recapitalization

On February 13, 2025, upon
the consummation of the Business Combination, the Company issued an aggregate total of 6,276,394 ordinary shares to RFAC Sponsor,
RFAC public shareholders, Early Bird Capital and certain investors designated by RFAC Sponsor.

The following table presents
the number of the Company’s ordinary shares issued upon the Reverse Recapitalization:

|                                                                                          |     | Ordinary 
 Share    |           |
| RFAC’s ordinary shares outstanding prior to Reverse Recapitalization