Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 255

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 255
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 |     |                   |   (61,319 | ) |
| Ending balance as of March 31, 2024                              |     | $                 | 3,697,000 |   |
| Contingent consideration for acquisition, current                |     |                   | 2,319,000 |   |
| Contingent consideration for acquisition, non-current            |     |                   | 1,378,000 |   |

<div align='center'>F-34

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

Effective April 1, 2020, the Company adopted
ASU 2016-02, “Leases” (Topic 842), and elected the practical expedients that does not require us to reassess: (1) whether
any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial
direct costs for any expired or existing leases. For lease terms of twelve months or fewer, a lessee is permitted to make an accounting
policy election not to recognize lease assets and liabilities. The primary impact of the adoption is the initial recognition of $600,270
of operating lease right-of-use assets and operating lease liabilities.

If any of the following criteria are met, the Company classifies
the lease as a finance lease:

| ● | The lease transfers ownership of the underlying asset to 
 the lessee by the end of the lease term;                 |

| ● | The lease grants the lessee an option to purchase the underlying 
 asset that the Company is reasonably certain to exercise;        |

| ● | The lease term is for 75% or more of the remaining economic                                                                        
 life of the underlying asset, unless the commencement date falls within the last 25% of the economic life of the underlying asset; |

| ● | The present value of the sum of the lease payments equals    
 or exceeds 90% of the fair value of the underlying asset; or |

| ● | The underlying asset is of such a specialized nature that                             
 it is expected to have no alternative use to the lessor at the end of the lease term. |

Leases that do not meet any of the above criteria are accounted
for as operating leases.

The Company combines lease and non-lease components
in its contracts under Topic 842, when permissible.

Finance and operating lease right-of-use (“ROU”)
assets and lease