Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 243

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 243
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 no impairment loss on goodwill was recognized for the years ended March 31, 2024.

For the years ended March 31, 2023, management
evaluated the recoverability of goodwill by performing qualitative assessment on its reporting units and determined that it is not
more 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 years ended March 31, 2023.

In accordance with ASC 360-10, long-lived assets,
including property and equipment with finite lives, are reviewed for impairment loss whenever events or changes in circumstances (such
as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of
an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the
assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flows expected to result from
the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the assets.
If an impairment loss is identified, the Company will reduce the carrying amount of the asset to its estimated fair value based on a discounted
cash flows approach, or, when available and appropriate, comparable market values. As of March 31, 2024 and 2023, no impairment of
long-lived assets was recognized.

In connection with the business combination set
forth in Note 3, the Company recognized contingent consideration for acquisition upon completion of the business combination in accordance
with ASC 805-10-55-28. The Company determined the fair value of the contingent consideration for acquisition as the Company has the obligation
to pay cash or issuing shares to settle the contingent consideration upon 2Game’s achievement of certain performance milestones.

In accordance with ASC 815-40 “Derivatives
and Hedging”, the Company determined that the contingent consideration for acquisition should classified as a liability as it does
not consider indexed to the Company’s stock. As a result, the contingent consideration for acquisition shall be measured initially,
and subsequently at fair value on each reporting date. The Company will continue to adjust the carrying value of the contingent consideration
for acquisitions until contingency is finally determined. Any changes in fair value will be recorded as a gain or loss in the statements
of operations and comprehensive loss.

<div align='center'>F-28

GCL GLOBAL LIMITED