Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 204

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 204
---
673  
  Goodwill                            $268,873  

The purchase price was allocated
to the identifiable intangible assets acquired and liabilities assumed based on their acquisition date estimated fair values. The identifiable
intangible assets principally included licenses, with estimated useful lives of1.0years based on the expected future economic benefit
of the assets and are being amortized over the estimated useful life in proportion to the economic benefits consumed using the straight-line
method.

The Company, with the assistance
of a third-party appraiser, assessed the fair value of the100% equity interest, and identifiable intangible assets acquired, in Starry
through using income approach based on a number of factors including in the valuations from the third-party appraiser. The significant
assumptions used by the Company include financial forecast and discount rate.

F-29

GCL GLOBAL HOLDINGS LTD
AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The fair value of the licenses
was estimated using a relief-from-royalty method. This method calculates fair value by assuming that if the license were to be acquired
from a third-party owner, a royalty rate on revenue would be charged for the privilege of using the asset. Therefore, the fair value of
the licenses represents the present value of the after-tax royalties saved as a result of owning the legal right to utilize the licenses.

The goodwill, which is not
deductible for income tax purposes, is primarily attributed to the enhanced brand recognition expected from integrating Starry’s
operations. The acquisition of Starry is strategically aimed at leveraging its expertise in jewelry and accessories retail. By collaborating
with Starry, the Company plans to create unique, game character-inspired jewelry and accessories. This collaboration will not only promote
and market certain games but also expand the Company’s customer base. The synergy between the gaming operations and the jewelry
business is expected to increase brand visibility and appeal to a broader demographic, thereby enhancing brand recognition.

- Acquisition of Martiangear

On July 25, 2023, the
Company through its subsidiary, Titan Digital, entered into a sale and purchase agreements (“ SPA2”) with two third-parties
(“ Vendors”) to acquire100% equity interest of Martiangear. Martiangear was incorporated in Singapore on September 24,
2020, and its principal activities include distribution of gaming desks and chairs. The acquisition of Martiange ar
was completed on September 4, 2023 (“ Acquisition