Company: GCL
Filing Date: 2025-07-31
Form Type: 424B3
Source: 0001213900-25-070094
Chunk: 119

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 424B3
Chunk 119
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 fair value of consideration payable related to our acquisition of 2Game, offset by approximately $0.3 million increased interest
expense which was due to higher interest rate on loans acquired during the year ended March 31, 2024 compared to the same period
in 2023.

Provision for income tax

Our provision for income
tax decreased by approximately $0.6 million, or 91.4 %, to approximately $53,000 income tax provision for the year ended March 31, 2024
from approximately $0.6 million for the same period in 2023. This decrease was primarily due to an increase of approximately $0.4 million
in deferred tax benefits resulting from the recognition of additional deferred tax asset from net operating loss (“NOL”)
of our Singapore subsidiaries for the year ended March 31, 2024, as we expected to utilize the NOL against our taxable income in
the future and approximately $0.2 million decrease in current income tax as we had less taxable income for the year ended March 31, 2024.
In addition, the decrease of our provision for income tax were attributable to (1) 14.0% decrease of effective rate from tax rate
difference outside Singapore which was mainly due to NOL from GCL BVI and GCL Global with total amount of approximately $1.5 million.
Since GCL BVI and GCL Global were established in British Virgin Island and Cayman Island, respectively, they do not subject to income
tax due to local laws, and (2) 4.2% decrease of effective rate from loss from foreign exchange transaction which is non-deductible from
our Hong Kong subsidiaries. Given that we expect GCL BVI and GCL Global to continue incurring significant transaction costs related
to the Business Combination with RFAC, we anticipate that the recent decrease in our provision for income tax to be indicative a trend
in our future effective tax rates.

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Net (Loss) Income

We incurred a net loss of
approximately $2.0 million for the year ended March 31, 2024, while we have a net income of approximately $2.1 million
for the same period in 2023, representing a change of approximately $4.1 million, or 191.6%. Such change was mainly as a direct result
of the reasons discussed above.

5B. Liquidity and Capital Resources

Liquidity and