Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 235

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 235
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31,                     March 31,               
  Deferred Tax Assets                                                                          
  Net operating loss carryforwards       $                838,875      $              409,891  
  Allowance for credit loss                                65,177                      99,714  
  Lease liabilities                                       448,276                     315,935  
  Inventory write-off                                      41,307                     180,329  
  Less: valuation allowance                             ( 199,508                     ( 7,916  
  Deferred tax assets, net               $              1,194,127      $              997,953  
  Deferred tax liabilities:                                                                    
  Right of use assets                    $                468,476      $              325,463  
  Amortization of intangible assets                       374,591                     557,030  
  Deferred tax liabilities               $                843,067      $              882,493  
  Deferred tax assets, net               $                351,060      $              115,460  

F-49

GCL GLOBAL HOLDINGS LTD
AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of March 31, 2025, the
Company’s net operating losses carry forward from GCL Global SG, Titan Digital, Starry, Martiangear, 2Game Brazil, 2 Game Dubai,
RFAC, and Epicsoft Malaysia combined amounted to $5,075,982. The net operating losses from GCL Global SG and Martiangear can be carried
forward indefinitely in Singapore. The Company believe it is not more likely than not that Martiangear RFAC, 2Game Dubai and 2Game Brazil
will be able to fully utilize their deferred tax assets associated with net operating loss carryforwards given their history of recurring
losses and ongoing uncertainty regarding future profitability. As a result, the Company provided a100% allowance on deferred tax assets
on net operating losses of $199,508related to Martiangear, RFAC, 2Game Dubai, and 2Game Brazil as of March 31, 2025.

The movements of the valuation allowance are as follows:

                                      March 31,               
  Balance as of March 31, 2023        $                5,874  
  Allowance made during the year                       7,916  
  Decrease due to dissolution                        ( 5,874  
  Balance as of March 31, 2024        $