Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 256

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 256
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 liabilities are recognized at the commencement date based on the present value of lease payments over the lease term.
Since the implicit rate for the Company’s leases is not readily determinable, the Company uses its incremental borrowing rate based
on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate
is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments,
in a similar economic environment and over a similar term.

Lease terms used to calculate the present value
of lease payments generally do not include any options to extend, renew, or terminate the lease, as the Company does not have reasonable
certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its finance or
operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the short-term lease exception,
therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases
generally do not provide a residual guarantee.

The finance or operating lease ROU asset also excludes
lease incentives. Lease expense is recognized on a straight-line basis over the lease term for operating lease. Meanwhile, the Company
recognizes the finance leases ROU assets and interest on an amortized cost basis. The amortization of finance ROU assets is recognized
on an accretion basis as amortization expense, while the lease liability is increased to reflect interest on the liability and decreased
to reflect the lease payments made during the period. Interest expense on the lease liability is determined each period during the lease
term as the amount that results in a constant periodic interest rate of the office equipment on the remaining balance of the liability.

<div align='center'>F-35

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

The Company reviews the impairment of its ROU assets
consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets
when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment
of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax
cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities in any tested