Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 207

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 207
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angible assets principally included trademark and license, with estimated useful lives of7.45years and0.82year, 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 the100% 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
assumptions being used by the Company include revenue forecast and discount rate.

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 its100% owned subsidiary, GCL Global SG, entered into a share purchase agreement (the “ SPA”) with three
unrelated parties to acquire a51% 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 pay an aggregate of up to $6,120,000consideration
which consist of following five tranches to the aforementioned three parties upon certain conditions are met.

  Tranche 1 — A cash consideration of $ 6,550 is to be paid upon the completion of the acquisition of 2Game.  

  Tranche 2 — A consideration of $ 2,993,450, comprised of 67% in cash and 33% in shares, is to be issued upon the successful listing on the US capital market.  

  Tranche 3 — A consideration of $ 800,000, comprising 67% in cash and 33% in shares, is to be paid upon 2Game’s achievement