Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 320

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 320
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as the Company does not have reasonable certainty at lease inception that these options will be exercised. The Company generally considers
the economic life of its finance or operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company
has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term
of twelve months or less. Its leases generally do not provide a residual guarantee.

The
finance or operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease
term for operating lease. Meanwhile, the Company recognizes the finance leases ROU assets and interest on an amortized cost basis. The
amortization of finance ROU assets is recognized on straight-line basis as amortization expense, while the lease liability is increased
to reflect interest on the liability and decreased to reflect the lease payments made during the period. Interest expense on the lease
liability is determined each period during the lease term..

The
Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews
the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the
asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset
from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount
of operating lease liabilities in any tested asset group and include the associated operating lease payments in the undiscounted future
pre-tax cash flows. For the six months ended September 30, 2024 and 2023, the Company did not recognize impairment loss on its finance
and operating lease ROU assets.

The
Company identifies related parties, accounts for and discloses related party transactions in accordance with ASC 850, “Related
Party Disclosures” and other relevant ASC standards.

Corporations
or individual parties are considered to be related if they have the ability, directly or indirectly, to control the Company or exercise
significant influence over the Company in making financial and operating decisions. Entities are also considered to be related if they
are subject to common control or common significant influence.

<div align='center'>F-75

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

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