Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 148

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 148
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 year ended March
31, 2025 and 2024, we have other income, net amounted to approximately $2.9 million and $0.5 million, respectively, representing an increase
of approximately $2.4 million or 504.8%. The increase was attributable to recognition of approximately $4.9 million gain from change
in fair value of convertible notes and derivative liabilities, while offset by approximately $0.4 million decrease in other income, net,
which was primarily due to the decrease of marketing revenue recognized from our vendor who compensated our marketing expense incurred
from prior period, approximately $1.8 million increase in interest expense due to increased debt financing in current period and approximately
$1.6 million of finance cost related to debt issuance cost from issuance of the convertible notes, and approximately $0.3 million increase
in loss from change in fair value of consideration payable related to 2Game acquisition from prior period.

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Income taxes expense

Our income tax expense increased
by approximately $1.1 million, or 2017.9%, to approximately $1.1 million for the year ended March 31, 2025, compared to approximately
$53,000 for the same period in 2024. This increase was primarily attributable to (i) an increase of approximately $0.6 million in current
income tax expense resulting from higher taxable income in the current period, and (ii) a decrease of approximately $0.4 million in deferred
income tax benefit due to the utilization of previously recognized deferred tax assets against current taxable income.

Net Income (Loss)

We incurred a net income
of approximately $5.0 million for the year ended March 31, 2025, while we have a net loss of approximately $2.0 million for the same
period in 2024, representing a change of approximately $7.0 million, or 357.5%. Such change mainly was a direct outcome of the reasons
discussed above.

Results of Operations

Comparison of The Years Ended March 31, 2024 and 2023

|                               |     | For the Years Ended March 31, |       2024 |   |     |   |       2023 |   |     |   |     Change |   |     |     | Percentage 
     Change |    |
|:------------------------------|:----|:------------------------------|-----------:|:--|:----|:--|-----------: