Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 240

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 240
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 flows from sales activities until the last code is sold, with
the total balance and the number of consol game codes decreasing as individual codes are sold.

<div align='center'>F-26

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

Impairment testing for indefinite-lived intangible
assets is conducted on both an interim and annual basis to assess whether the carrying value of an individual asset exceeds its fair value.
When the carrying value exceeds fair value, the carrying amount is reduced to the fair value. The assessment for impairment incorporates
a review of external factors, including current market prices for console game codes, market demand trends, and market competition. Additionally,
the evaluation considers the long-term viability of the console game codes, factoring in elements such as platform support and the lifespan
of the gaming ecosystem in which the console game codes operate.

If the fair market value of an indefinite-lived
intangible asset is determined to be lower than its carrying value at any point during the reporting period, an impairment loss equal
to the difference is recognized in the consolidated statements of operations and comprehensive (loss) income. For the years ended March
31, 2024, and 2023, impairment losses of $500,684 and nil, respectively, were recorded against indefinite-lived intangible assets.

Definite-lived intangible assets consisted primarily
of customer relationships, trademark and license. The estimated useful life and amortization methodology of intangible assets are determined
based on the period in which they are expected to contribute directly to cash flows in accordance with ASC Topic 350 “Intangibles — Goodwill
and Other”. Intangible assets that are determined to have a definite life are amortized over the life of the asset.

Definite-lived intangible assets are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination
of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition.
Measurement of any impairment loss for identifiable intangible assets is based on the amount by which the carrying amount of the assets
exceeds its fair value determined by using a discounted cash flow model.

Goodwill represents the excess of the consideration
paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiaries at the date of acquisition. Goodwill
is not amortized and is tested for impairment at least