Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 286

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 286
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 their credit worthiness.

The Company is also exposed to risk from accounts
receivable and other receivables. These assets are subjected to credit evaluations. An allowance has been made for estimated unrecoverable
amounts which have been determined by reference to past default experience and the current economic environment.

Note 16 — Leases

As of March 31, 2024 and 2023, the Company
has engaged in multiple offices and warehouse leases which were classified as operating leases. In addition, the Company engaged in a
few automobiles lease under finance lease agreements.

The Company occupies various offices under operating
lease agreements with a term shorter than twelve months which it elected not to recognize lease assets and lease liabilities under
ASC 842. Instead, the Company recognized the lease payments in profit or loss on a straight-line basis over the lease term and variable
lease payments in the period in which the obligation for those payments is incurred.

The Company’s lease agreements do not contain
any material residual value guarantees or material restrictive covenants.

<div align='center'>F-52

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

The Company recognized lease expense on a straight-line
basis over the lease term for operating lease. Meanwhile, the Company recognized the finance leases ROU assets and interest on an amortized
cost basis. The amortization of finance ROU assets is recognized on an accretion 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.

The ROU assets and lease liabilities are determined
based on the present value of the future minimum rental payments of the lease using an weighted average effective interest rate of 4.9%
and 3.3% respectively for the years ended March 31, 2024 and 2023, which is determined using various incremental borrowing rate
with similar term in Singapore, Hong Kong, and Malaysia.

As of March 31, 2024 and 2023, the weighted-average
remaining operating lease term of its existing leases is approximately 1.6 and 1.9 years, respectively. As of March 31, 2024
and 2023, the weighted-average remaining financing lease term of its existing leases is approximately 4.4 and 4.0 years, respectively.

Operating and finance lease expenses consist of the following:

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