Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 228

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 228
---
anche1share consideration
related to the acquisition of Martiangear (see Note 4).

Settlement of Contingent Consideration from
2Game Acquisition

On October 1, 2023, GCL Global issued shares to the individuals
to settle tranche 3 of the contingent consideration in connection with the 2Game acquisition and such shares were exchanged for82,696ordinary shares of the Company at the closing of the Business Combination. (See Note 4).

F-44

GCL GLOBAL HOLDINGS LTD
AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At the closing of the Business Combination, the Company collectively
issued additional ordinary shares of1,059,628to the individuals to settle tranche 2 of the contingent consideration in connection with
the 2Game acquisition. (See Note 4).

Conversion of convertible notes

On February 13, 2025, convertible notes in the aggregate principal
amount of $33,025,000were converted into7,338,887ordinary shares of the Company. In addition,2,201,665ordinary shares of the
Company were issued and held in an escrow account for three years as Bonus Shares (See Note 16).

Stock based compensation

On November 8, 2022, the Company
entered into two separate SPAC listing consultancy agreements (collectively, the “ Consultancy Agreements”) with two third-party
consultants (the “ Consultants”) to assist in facilitating the Business Combination. Pursuant to the Consultancy Agreements,
the Company agreed to compensate the Consultants an aggregate amount of $20,000,000, payable, at the sole discretion of the Company, in
either cash or equity upon the closing of the Business Combination. On February 13, 2025, upon the closing of the Business Combination,
the Company elected to settle the obligation by issuing an aggregate of2,000,000ordinary shares to the Consultants.

Because the services provided
by the Consultants were directly related to the Business Combination and contingent upon its successful closing, the Company determined
that the associated stock-based compensation should be accounted for as a direct and incremental cost of the transaction. Accordingly,
the fair value of the shares issued was recorded as a reduction to additional paid-in capital in accordance with ASC 340-10-S99-1, “ Expenses
of Offering.”

Reverse Recapitalization

On February 13, 2025, upon the consummation of the Business Combination,