Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 306

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 306
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4, the Company provided allowance related
to prepayment of $20,113 and $209,412, respectively

Property
and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated
useful lives of the assets with no residual value. The estimated useful lives are as follows:

|                                 |     | Expected useful lives                |
| Office equipment                |     | 3 years                              |
| Furniture & fitting             |     | 3 years                              |
| Office and warehouse renovation |     | Shorter of the lease term or 3 years |

The
cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is
included in the consolidated statements of operation and comprehensive loss. Expenditures for maintenance and repairs are charged to
earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized.
The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates
of useful lives.

The
Company’s indefinite-lived intangible assets consisted of the console game codes. The console game codes represent sequences of
code providing users with access to specific video games. Acquired from vendors in batches, their primary purpose is for resale. Each
console game code grants single access right to the user and is individually identified at cost upon purchase from its vendor.

Each
console game code is defined as an intangible asset, due to its lack of physical form. The useful life of an intangible asset should
be considered indefinite if no legal, regulatory, contractual, competitive, economic, or other factors limit its useful life to the reporting
entity in accordance with ASC 350-30-35-4. Consequently, each console game code is recorded at cost on the Company’s consolidated
balance sheet and is not subject to amortization. Instead, the cost of each game code will be transferred to cost of goods sold upon
the sale of each individual code. Additionally, the remaining balance of the console game codes will continue to generate cash flows
from sales activities until the last code is sold, with the total balance and the number of consol game codes decreasing as individual
codes are sold.

Impairment
testing for indefinite-lived intangible assets is conducted on both an interim and annual basis to assess whether the carrying value
of an individual asset exceeds its fair value. When the carrying value exceeds fair value, the carrying amount