Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 254

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 254
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 sustained in a tax examination, with a tax examination
being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized
on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. No penalties and
interest were incurred related to underpayment of income tax for the years ended March 31, 2024 and 2023.

The Company recognizes interest and penalties related
to unrecognized tax benefits, if any, on the other expense line in the accompanying consolidated statement of income. Accrued interest
and penalties are included on the other payables and accrued liabilities line in the consolidated balance sheets.

The Company conducts much of its business activities
in Singapore, Malaysia, and Hong Kong and is subject to taxation in these jurisdictions. As a result of its business activities, the Company’s
subsidiaries file separate tax returns that are subject to examination by the foreign tax authorities. As of March 31, 2024, the
tax returns for the Company’s Singapore entities from 2021 through 2024 remain open for statutory examination by the Singapore tax
authorities. Similarly, as of March 31, 2024, the tax returns for the Company’s Hong Kong entities from 2019 through 2024 remain
open for statutory examination by the tax authorities in Hong Kong, respectively. In addition, as of March 31, 2024, the tax returns
for the Company’s Malaysia entity from 2020 through 2024 remain open for statutory examination by the tax authorities in Malaysia.

Comprehensive loss consists of two components, namely
net income and other comprehensive loss. Other comprehensive loss refers to revenue, expenses, gains and losses that under GAAP are recorded
as an element of shareholders’ equity but are excluded from net income (loss). Other comprehensive loss includes items such as results
of foreign currency translation adjustment.

<div align='center'>F-33

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

The Company computes earnings or loss per share
(“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted
EPS. Basic EPS is measured as net income attributable to the Company divided by the weighted average ordinary share outstanding for the
period. Diluted EPS presents the diluted effect on a per share basis of the potential ordinary shares