Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 219

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 219
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 2Game for a total consideration of $1,200,000. As a result 
 of this acquisition, GCL Global SG increased its equity interest in 2Game from 51% to 61% (See Note 19).                         |

<div align='center'>F-9

GCL GLOBAL HOLDINGS LTD AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

Note 2 — Summary of significant accounting policies

The consolidated financial
statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S.
GAAP”) pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”).

The consolidated financial
statements include the financial statements of the Company and its subsidiaries. All transactions and balances among the Company and
its subsidiaries have been eliminated upon consolidation.

A subsidiary is an entity
in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial
and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at
the meeting of directors.

The preparation of the consolidated
financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements
and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s
consolidated financial statements include lease liabilities, right-of-use assets, determinations of the useful lives and valuation of
long-lived assets, estimates of allowances for credit loss and doubtful accounts, reserve for excess and obsolete inventory, estimates
of impairment of long-lived assets and goodwill, valuation allowances for deferred tax assets, other provisions and contingencies, contingent
consideration for acquisition, fair value of derivative liability and estimated fair value used in business acquisitions. Actual results
could differ from these estimates, and as such, differences may be material to the consolidated financial statements.

Transactions denominated
in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the
dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated
into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded
in the consolidated statements of operation and comprehensive income (loss).

The
reporting currency of