Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 273

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 273
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ger Consideration
Shares held on the third anniversary date of the Business Combination. The Transaction Investors will be entitled to receive 110% of
the outstanding principal balance of the Note in the event that the Business Combination is not consummated on or before March 28,
2025, or if the per share price used to the calculate the Exchange Ratio for the Business Combination is less than $10.00 per share.
Epic SG has agreed to unconditionally guarantee all of the Company’s obligations and performance under $33,250,000 of the Note,
including but not limited to the Company’s obligation to pay.

<div align='center'>F-41

GCL GLOBAL HOLDINGS LTD AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

In addition, the issuance
costs in connection with these Notes amounted to $1,590,750 and were expensed in full on the issuance date, as the Company elected to
account for the convertible notes at fair value under the fair value option.

Upon
completion of the Business Combination on February 13, 2025, the aggregate principal amount
of the Notes, net of unamortized discount, amounted to $33,025,000 which was converted into 7,338,887
ordinary shares of the Company. In addition, 2,201,665 shares of the Company’s ordinary
shares were issued and held in an escrow account for three years as the Bonus Shares.

The Company evaluated the
convertible notes agreement under ASC 470 Debt (“ASC 470”), and ASC 815 Derivatives and Hedging (“ASC 815”).
ASC 815 generally requires the analysis embedded terms and features that have characteristics of derivatives to be evaluated for bifurcation
and separate accounting in instances where their economic risks and characteristics are not clearly and closely related to the risks
of the host contract.

The Company elected to measure
the entire convertible note, including all embedded features, at fair value option under ASC 825 on the issuance date, with changes in
fair value recognized through earnings until conversion. The fair value of the convertible notes was determined the same as its carrying
value at issuance than reevaluated upon conversion by using a scenario-based probability-weighted approach for the conversion and bonus
share components and a Monte Carlo simulation model for the top-up share feature. Subsequently, the component of fair value changes relating
to the instrument specific credit risk of the convertible note is minimal. Key assumptions