Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 246

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 246
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 of certain performance milestones.

In accordance with ASC 815-40 “Derivatives
and Hedging”, the Company determined that the contingent consideration for acquisition should classified as a liability as it does
not consider indexed to the Company’s stock. As a result, the contingent consideration for acquisition shall be measured initially,
and subsequently at fair value on each reporting date. The Company will continue to adjust the carrying value of the contingent consideration
for acquisitions until contingency is finally determined. Any changes in fair value will be recorded as a gain or loss in the statements
of operations and comprehensive loss.

<div align='center'>F-28

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

Contingent consideration for acquisition was valued
at the time of acquisitions and each of the financial statement date, using unobservable inputs and undiscounted cash flow methodology.
The determination of the fair value is based on discounted cash flows, the key assumptions take into consideration the probability of
meeting each performance target and the discount factor.

The Company accounts for its ordinary shares subject
to possible redemption in accordance with the guidance in ASC Topic 480 “Distinguishing Liabilities from Equity”, where equity
interests are determined to be conditionally redeemable upon the occurrence of certain events that are not solely within the control of
the Group, and upon such event, the shares would become redeemable at the option of the holders, they are classified as mezzanine equity
(temporary equity). As of March 31, 2024 and 2023, ordinary shares subject to possible redemption are 168,711 and 115,000 shares
as temporary equity, outside of the shareholders’ equity section of the Company’s consolidated balance sheet. The Company
recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable Common Stock to equal the
redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable ordinary shares are
affected by charges against additional paid-in capital or accumulated deficit if additional paid-in capital equals to zero. For the year
ended March 31, 2024, the Company recognized changes in redemption value of $12,652. On November 22, 2023, 115,000 ordinary
shares were fully redeemed for cash consideration of $ 163,905.

The Company follows the revenue accounting requirements
of Accounting Standards Update (“ASU”) No. 2014-