Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 241

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 241
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 of the economic life of the underlying asset; |

| ● | The present value of the sum of the lease payments equals or exceeds 90% of the fair value of the 
 underlying asset; or                                                                              |

| ● | The underlying asset is of such a specialized nature that it is expected to have no alternative 
 use to the lessor at the end of the lease term.                                                 |

Leases that do not meet any of the above criteria
are accounted for as operating leases.

The Company combines lease and non-lease components
in its contracts under Topic 842, when permissible.

Finance and operating lease
right-of-use (“ROU”) assets and lease liabilities are recognized at the commencement date based on the present value of lease
payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company uses its
incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.
The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount
equal to the lease payments, in a similar economic environment and over a similar term.

Lease terms used to calculate
the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, 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