Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 308

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 308
---
 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.

Contingent
consideration for acquisition was valued at the time of acquisitions and each of the financial statement date, using unobservable inputs
and discounted cash flow methodology. The determination of the fair value is based on discounted cash flows, the key assumptions include
the probability of meeting each performance target and the discount factor.

The
Company accounts for its ordinary shares subject to possible redemption in accordance with the guidance in ASC Topic 480 “Distinguishing
Liabilities from Equity”, where equity interests are determined to be conditionally redeemable upon the occurrence of certain events
that are not solely within the control of the Group, and upon such event, the shares would become redeemable at the option of the holders,
they are classified as mezzanine equity (temporary equity). As of September 30, 2024 and March 31, 2024, ordinary shares subject
to possible redemption are 53,711 shares as temporary equity, outside of the shareholders’ equity section of the Company’s
consolidated balance sheet. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value
of redeemable Common Stock to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying
amount of redeemable ordinary shares are affected by charges against additional paid-in capital or accumulated deficit if additional
paid-in capital equals to zero. On November 22, 2023, 115,000 ordinary shares were fully redeemed for cash consideration of $ 163,905.

The
Company follows the revenue accounting requirements of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from
Contracts with Customers (Topic 606) (“Accounting Standards Codification (“ASC”) 606”). The core principle underlying
the revenue recognition of this ASU allows the Company to recognize revenue that represents the transfer of goods and services to customers
in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This requires the Company
to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based
on when control of goods and services transfers to a customer.

<div align='center'>F-68

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO UNAUDITED