Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 211

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 211
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) financial performance that shows a consistent trend of the operation; (c) consideration
and analysis on the micro and macro economy affecting the subject asset; (d) analysis on tactical planning, management standard and synergy
of the subject assets; (e) analytical review of the subject asset; and (f) assessment of the leverage and liquidity of the subject
asset. The significant assumption being used by the Company includes financial forecast, discount rate and attribution rate.

The fair value of the non-controlling interest
in 2Game’s was measured based on significant inputs that are not observable in the market and thus represents a Level 3 measurement.
Key assumption includes adjustments because of the lack of control that market participants would consider when estimating the fair value
of the noncontrolling interest in 2Game.

The fair value of client relationships was estimated
using a multi-period excess earnings method. To calculate fair value, the Company estimated the attribution rate and used cash flows discounted
at a rate considered appropriate given the inherent risks associated with each client grouping.

The goodwill is not deductible for income tax
purposes and is related primarily to the expected synergies from combining the operations into the Company’s business operation
in console game.

Note 5 - Long-term investments

As of March 31, 2025 and 2024, Long-term investments
comprised of the following:

                                        March 31,                      March 31,              
                                        2025                           2024                   
  Investment in Nekcom                  $              15,364,229      $              -       
 ──────────────────────────────────────────────────────────────────────────────────────────────
  Investment in Cloudshelf Limited                         71,045                     71,045  
  Total                                 $              15,435,274      $              71,045  

Investment in Nekcom

On November 20, 2024 (“ Acquisition
Date”), the Company, Nekcom and certain significant shareholders of Nekcom entered into a Series B Preferred Stock Purchase Agreement
(the “ Nekcom SPA”) pursuant to which the Company has agreed to purchase12,250,000of Nekcom’s Series B Preferred Stock
that would constitute20% of the total outstanding shares of Nekcom for an aggregate purchase price of $15,000,000consisting of (a) $7,500,000in cash, and (b) $7,500,000in the Company’s ordinary shares.

F-34

GCL GLOBAL HOLDINGS