Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 243

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 243
---
836 | ) |
| Ending balance as of March 31, 2025                                            |     | $ |           - |   |

|                                                                                |     | Derivative      
 liabilities     
 (Top-Up Shares) |           |
|:-------------------------------------------------------------------------------|:----|:----------------|----------:|
| Fair value allocated to Top-Up Shares upon conversion of the convertible notes |     | $               | 2,707,836 |
| Change in fair value of derivative liability                                   |     |                 |   378,683 |
| Ending balance as of March 31, 2025                                            |     | $               | 3,086,519 |

<div align='center'>F-23

GCL GLOBAL HOLDINGS LTD AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

The Company accounts for leases in accordance
with ASU 2016-02, “Leases” (Topic 842).

If any of the following criteria are met, the
Company classifies the lease as a finance lease:

| ● | The lease transfers ownership of the underlying asset to the lessee by the end of the lease term; |

| ● | The lease grants the lessee an option to purchase the underlying asset that the Company is reasonably 
 certain to exercise;                                                                                  |

| ● | The lease term is for 75% or more of the remaining economic life of                                                        
 the underlying asset, unless the commencement date falls within the last 25% of the economic life of the underlying asset; |

| ● | The present value of the sum of the lease payments equals or exceeds 90% of the fair value of the 
 underlying asset; or                                                                              |

| ● | The underlying asset is of such a specialized nature that it is expected to have no alternative 
 use to the lessor at the end of the lease term.                                                 |

Leases that do not meet any of the above criteria
are accounted for as operating leases.

The Company combines lease and non-lease components
in its contracts under Topic 842, when permissible.

Finance and operating lease
right-of-use (“ROU”) assets and lease liabilities are recognized at the commencement date based on the present value of lease
payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company uses its
incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.
The incremental borrowing rate is the rate of interest that the Company