Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 315

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 315
---
 transactions resulting
from investments by shareholders and distributions to shareholders. Among other disclosures, ASC 220, Comprehensive Income, requires
that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported
in a financial statement that is displayed with the same prominence as other financial statements. For each of the periods presented,
the Company’s comprehensive income includes net loss and foreign currency translation adjustments and is presented in the consolidated
statements of comprehensive loss.

Leases

The Company determines if an arrangement
is a lease at inception in accordance with ASC 842, Leases (“ASC 842”). Leases are classified as operating or finance leases
in accordance with the recognition criteria in ASC 842-10-25. The Company’s leases do not contain any material residual value guarantees
or material restrictive covenants.

Lessee accounting

The Company recognizes right-of-use
(“ROU”) assets and liabilities on the lease commencement date based on the present value of lease payments over the lease
term. As the rate implicit in the Company’s leases is not typically readily available, the Company uses an incremental borrowing
rate based on the information available at the lease commencement date in determining the present value of lease payments. This incremental
borrowing rate reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in
the same currency, for a similar term, in a similar economic environment. The ROU assets also include any lease payments made, net of
lease incentives. Lease terms are based on the non-cancellable term of the lease and may contain options to extend the lease when it
is reasonably certain that the Company will exercise that option. Leases with an initial lease term of 12 months or less are not recorded
on the consolidated balance sheets.

The Company has lease agreements with
lease and non-lease components, which are accounted for as a single lease component based on the Company’s policy election to combine
lease and non-lease components for its leases. Variable lease payments not dependent on an index or rate are excluded from the ROU asset
and lease liability calculations and are recognized in expense in the period which the obligation for those payments is incurred. Operating
lease expense for lease payments is recognized on a straight-line basis over the lease term. A finance lease ROU asset is depreciated
on a straight-line basis over the lesser of the useful life of the leased asset or the lease term. Interest on each finance lease liability
is determined as the amount that