Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 368

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 368
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 that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging
growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period,
which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company,
as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard.
This may make comparison of the Company’s financial statements with another public company, which is neither an emerging growth
company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of
the potential differences in accounting standards used.

Concentration of Credit Risk and Inflation Risk

Financial instruments that
potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times,
may exceed the Federal Depository Insurance Coverage limit of $250,000. In addition, inflation has been increasing in recent periods and
is expected to continue to be volatile in the future. Our investment portfolio may experience the risk of realized losses on our short-term
investments if we were to sell before maturity due to the market volatility caused by increased interest rates. At December 31, 2024,
the Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such
accounts.

<div align='center'>F-106</div>

Fair Value of Financial Instruments

The fair value of the Company’s
assets and liabilities which qualify as financial instruments under the FASB ASC 820, “Fair Value Measurements and Disclosures,”
equal or approximate the carrying amounts represented in the balance sheet, primarily due to their short-term nature.

Fair Value Measurements

Fair value is defined as the
price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants
at the measurement date. US GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements)
and the lowest priority to unobservable inputs (Level 3 measurements). These tiers consist of:

| ● | Level                                                                                                           
 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; |

| ●