Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 253

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 253
---
royalty method. This method calculates fair value by assuming that if the license were to be acquired
from a third-party owner, a royalty rate on revenue would be charged for the privilege of using the asset. Therefore, the fair value
of the licenses represents the present value of the after-tax royalties saved as a result of owning the legal right to utilize the licenses.

The goodwill, which is not
deductible for income tax purposes, is primarily attributed to the enhanced brand recognition expected from integrating Starry’s
operations. The acquisition of Starry is strategically aimed at leveraging its expertise in jewelry and accessories retail. By collaborating
with Starry, the Company plans to create unique, game character-inspired jewelry and accessories. This collaboration will not only promote
and market certain games but also expand the Company’s customer base. The synergy between the gaming operations and the jewelry
business is expected to increase brand visibility and appeal to a broader demographic, thereby enhancing brand recognition.

— Acquisition of Martiangear

On July 25, 2023, the
Company through its subsidiary, Titan Digital, entered into a sale and purchase agreements (“SPA2”) with two third-parties
(“Vendors”) to acquire 100% equity interest of Martiangear. Martiangear was incorporated in Singapore on September 24,
2020, and its principal activities include distribution of gaming desks and chairs. The acquisition of Martiangear was completed on September 4, 2023 (“Acquisition Date”). Pursuant to the SPA2, The Company is obligated to remit an aggregate total of $835,348 consideration in fair value which consist of following three tranches to the Vendors.

| ● | Tranche                                                                                         
 1 — 217,724 of the Company’s ordinary shares (“Consideration Share”)                            
 to the Vendors on the Acquisition Date. In the event that the Company fail to become a listed   
 company within 24 months from the Completion Date, the Company irrevocably undertakes to        
 purchase all of the Consideration Share from the Vendors for a cash consideration of $700,000.  
 Given the condition of whether the company can become a listed entity within 24 months is       
 not solely within the control of the Company and in accordance with ASC 480-10-S99, the Company 
 record the fair value of the issuance of the Consideration Shares in Tranche 1 to the Vendors   
 as mezzanine equity.                                                                            |

| ● | Tranche                                                                            
 2 — An aggregate