Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 266

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 266
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     |                  | (30,654 | ) |
| Total net assets of Martiangear  |     |                  | 160,981 |   |
| Goodwill                         |     | $                | 674,367 |   |

<div align='center'>F-40

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

The purchase price was allocated to the identifiable
intangible assets acquired and liabilities assumed based on their acquisition date estimated fair values. The identifiable intangible
assets principally included license and trademark, with estimated useful lives of 7.45 years and 0.82 year, respectively, based on
the expected future economic benefit of the assets and are being amortized over the estimated useful life in proportion to the economic
benefits consumed using the straight-line method.

The Company, with the assistance of a third-party
appraiser, assessed the fair value of the 100% equity interest, and identifiable intangible assets acquired, in Martiangear through using
income approach based on a number of factors including in the valuations from the third-party appraiser. The significant assumption being
used by the Company includes revenue forecast and discount rate. Acquisition-related costs incurred for the acquisitions are not material
and have been expensed as incurred in general and administrative expense.

The fair value of the licenses and trademarks was
estimated using a relief-from-royalty method. This method calculates fair value by assuming that if the licenses and trademarks were to
be acquired from third-party owners, a royalty rate on revenue would be charged for the privilege of using the assets. Consequently, the
fair value of the licenses and trademarks represents the present value of the after-tax royalties saved as a result of owning the legal
right to utilize them.

The goodwill is not deductible for income tax purposes
and is related primarily to the expected synergies from combining the operations into the Company’s business operation in console
game.

— Acquisition of 2Game

On July 31, 2022, the Company, through its
100% owned subsidiary, GCL Global SG, entered into a share purchase agreement (the “SPA”) with three unrelated parties to
acquire a 51% equity interest in 2Game. 2Game, incorporated in Hong Kong, primarily engages in the distribution of game codes and other
related consumer items. Pursuant to the SPA, the Company is obligated to an aggregate of up to $6,120,