Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 245

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 245
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ment assessment will apply to all reporting units.

For the year ended March 31, 2024, management
evaluated the recoverability of goodwill by comparing the fair value of a reporting unit with its carrying amount. The Company had engaged
with a third-party appraiser in assessing the fair value of the game distribution reporting unit by applying income approach which considers
the present value of the game distribution reporting unit’s future after-tax cash flows, discounting them to present value using
a 13.0% discount rate. As a result, the fair value of the game distributing reporting unit’s fair value exceeds its carrying value,
and therefore, no impairment loss on goodwill was recognized for the years ended March 31, 2024.

For the years ended March 31, 2023, management
evaluated the recoverability of goodwill by performing qualitative assessment on its reporting units and determined that it is not
more likely than not that the fair value of the reporting unit is less than its carrying amount, and therefore, no impairment loss on
goodwill was recognized for the years ended March 31, 2023.

In accordance with ASC 360-10, long-lived assets,
including property and equipment with finite lives, are reviewed for impairment loss whenever events or changes in circumstances (such
as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of
an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the
assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flows expected to result from
the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the assets.
If an impairment loss is identified, the Company will reduce the carrying amount of the asset to its estimated fair value based on a discounted
cash flows approach, or, when available and appropriate, comparable market values. As of March 31, 2024 and 2023, no impairment of
long-lived assets was recognized.

In connection with the business combination set
forth in Note 3, the Company recognized contingent consideration for acquisition upon completion of the business combination in accordance
with ASC 805-10-55-28. The Company determined the fair value of the contingent consideration for acquisition as the Company has the obligation
to pay cash or issuing shares to settle the contingent consideration upon 2Game’s achievement