Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 225

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 225
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-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, 2025
and 2024, no impairment of long-lived assets was recognized.

<div align='center'>F-14

GCL GLOBAL HOLDINGS LTD AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

In connection with the share
sale and purchase Agreement (“2Game SPA”) executed on March 19, 2025 between the Company and 2Game’s minority shareholders,
for the acquisition of an additional 10% controlling interest in 2Game, the Company recognized a derivative asset related to a contractual
buy-back option and obligation (“Buy-Back Feature”) embedded in the agreement. Under the terms of the agreement, the Company
has the sole discretion to exercise the buy-back option or may enforce a buy-back obligation requiring the minority shareholders of 2Game
to repurchase the acquired shares at a specified premium if certain financial targets are not met within the twelve months ended March
31, 2026. In accordance with ASC 815-40 “Derivatives and Hedging,” the Company determined that the Buy-Back Feature met the
definition of a derivative, and therefore need to bifurcate and separately accounted for. As a result, the Buy-Back feature is recognized
as a derivative asset, measured initially and subsequently at fair value, with changes in fair value recognized in the consolidated statements
of operations and comprehensive income (loss) in each reporting period until the obligation is settled or expires.

In connection with the business
combination set forth in Note 4, the Company recognized contingent consideration for acquisition upon completion of the business combination