Company: GCL
Filing Date: 2025-09-05
Form Type: F-1/A
Source: 0001213900-25-085150
Chunk: 251

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-05
Form: F-1/A
Chunk 251
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 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 $, 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 of ordinary 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, the Company issued an aggregate total of ordinary shares to RFAC Sponsor,
RFAC public shareholders, Early Bird Capital and certain investors designated by RFAC Sponsor.

The following table presents
the number of the Company’s ordinary shares issued upon the Reverse Recapitalization:

|                                                                                          |     | Ordinary 
 Share    |           |
| RFAC’s ordinary shares outstanding prior to Reverse Recapitalization                     |     |          | 3,126,396 |
| Ordinary shares issued at the Closing as an incentive                                    
 to certain investors designated by RFAC Sponsor in connection with Transaction Financing |     |          | 2,000,000 |
| Conversion of RFAC rights                                                                |     |          | 1,149,998 |
| Total shares issued upon the Reverse Recapitalization                                    |     |          | 6,276,394 |

Recognition of non-controlling interests from acquisition of subsidiaries

On April 12, 2023, Titan
Digital acquired a % equity interest in Starry from Debbie, the spouse of Jianhao Tan, the Chief Executive Officer (“CEO”)
of Titan Digital, through the issuance of ordinary shares, representing % of Titan Digital’s total outstanding shares,
to Debbie. As a result, the Company’s equity interest in Titan Digital was reduced from % to %, and $ of non-controlling
interest was recognized in the Company’s consolidated statements of changes in shareholders’ equity. Since no cash consideration
was received, the difference