Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 240

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 240
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 | 3 years                              |
| Office and warehouse renovation |     | Shorter of the lease term or 3 years |

The cost and related accumulated depreciation of
assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of operation
and comprehensive loss. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments,
which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to
determine whether subsequent events and circumstances warrant revised estimates of useful lives.

The Company’s indefinite-lived intangible
assets consisted of the console game codes. The console game codes represent sequences of code providing users with access to specific
video games. Acquired from vendors in batches, their primary purpose is for resale. Each console game code grants single access right
to the user and is individually identified at cost upon purchase from its vendor.

Each console game code is defined as an intangible
asset, due to its lack of physical form. The useful life of an intangible asset should be considered indefinite if no legal, regulatory,
contractual, competitive, economic, or other factors limit its useful life to the reporting entity in accordance with ASC 350-30-35-4.
Consequently, each console game code is recorded at cost on the Company’s consolidated balance sheet and is not subject to amortization.
Instead, the cost of each game code will be transferred to cost of goods sold upon the sale of each individual code. Additionally, the
remaining balance of the console game codes will continue to generate cash flows from sales activities until the last code is sold, with
the total balance and the number of consol game codes decreasing as individual codes are sold.

<div align='center'>F-26

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

Impairment testing for indefinite-lived intangible
assets is conducted on both an interim and annual basis to assess whether the carrying value of an individual asset exceeds its fair value.
When the carrying value exceeds fair value, the carrying amount is reduced to the fair value. The assessment for impairment incorporates
a review of external factors, including current market prices for console game codes, market demand trends, and market competition. Additionally,
the evaluation considers the long-term viability of the console game codes, factoring in elements such as platform support and the lifespan
of the gaming ecosystem