Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 193

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 193
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RC tax authorities.

Debt Issuance Costs

The Company incurred debt issuance costs in connection with the issuance of convertible notes described in Note
16. As the Company has elected to account for the convertible notes at fair value under the fair value option, all related debt issuance
costs are expensed immediately in the period incurred.

F-21

GCL GLOBAL HOLDINGS LTD
AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Comprehensive income (loss)

Comprehensive income (loss)
consists of two components, namely net income and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue,
expenses, gains and losses that under U. S. GAAP are recorded as an element of shareholders’ equity but are excluded from net income
(loss). Other comprehensive income (loss) includes items such as results of foreign currency translation adjustment.

Earnings (loss) per share

The Company computes earnings
or loss per share (“ EPS”) in accordance with ASC 260, “ Earnings per Share”. ASC 260 requires companies to present
basic and diluted EPS. Basic EPS is measured as net income attributable to the Company divided by the weighted average ordinary share
outstanding for the period. Diluted EPS presents the diluted effect on a per share basis of the potential ordinary shares (e. g., convertible
securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later.
Potential ordinary shares that have an anti-dilutive effect (i. e., those that increase income per share or decrease loss per share) are
excluded from the calculation of diluted EPS. For the year ended March 31, 2025, 2024, and 2023, the Company had the16,500,000,0, and0shares of warrants, respectively, outstanding which were not included in the calculation of diluted net (income) loss per ordinary
share because inclusion thereof would be anti-dilutive.

Fair value measurements

Fair value is defined as
the price that would be received for an asset, or paid to transfer a liability, in an orderly transaction between market participants
at the measurement date. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. When
determining the fair value measurements for assets and liabilities, we consider the principal or most advantageous market in which it
would transact and consider assumptions that market participants would use when