Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 120

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 4A
Chunk 120
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 two measurement dates. The Top-Up Share liability was recorded at approximately $2.7 million
as of the conversion date and $3.1 million as of March 31, 2025.

Goodwill impairment

We perform annual goodwill
impairment test by comparing the fair value of a reporting unit with its carrying amount. For the years ended March 31, 2025 and 2023,
management evaluated the recoverability of goodwill by performing qualitative assessment on its reporting units and determined that it
is less likely than not that the fair value of the reporting unit is less than its carrying amount, and therefore, no impairment loss
on goodwill was recognized for the year ended March 31, 2025 and 2023. For the years ended March 31, 2024, management evaluated the recoverability
of goodwill by comparing the fair value of a reporting unit with its carrying amount. We had engaged a third-party appraiser to assess
the fair value of the game distribution reporting unit by applying income approach which considers the present value of the game distribution
reporting unit’s future after-tax cash flows, discounting them to present value using a 13.0% discount rate. As a result, the fair
value of the game distributing reporting unit’s fair value exceeds its carrying value, and therefore, no impairment loss on goodwill
was recognized for the year ended March 31, 2024.

Recent Accounting Pronouncements

See
Note 2 of the notes to the consolidated financial statements included elsewhere in this annual report for a discussion of recently issued
accounting standards.

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES