Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 351

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 351
---
 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.

<div align='center'>F-91

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

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

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 straight-line 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 a weighted average
effective interest rate of 4.6% and 3.4% respectively for the six months ended September 30, 2024 and 2023, which is determined using
various incremental borrowing rate with similar term in Singapore, Hong Kong, Malaysia and Brazil.

As of September 30,
2024 and March 31, 2024, the weighted-average remaining operating lease term of its existing leases is approximately 1.3 and 1.6
years, respectively. As of September 30, 2024 and March 31, 2024, the weighted-average remaining financing lease term of its
existing leases is approximately 3.9 and 4.4 years, respectively.

Operating and finance lease expenses consist
of the following:

|                               |     |                                     |     | For the Six Months Ended September 30, |         |     |            |         |
|                               |     | Classification                      |     |                                   2024 |         |     |       2023 |         |
|                               |     |                                     |     |                             -Unaudited |         |     | -Unaudited |         |
| Operating lease cost          |     |                                     |     |                                        |         |     |            |         |
| Lease expenses                |     | General and administrative          |     |                                        | 478,663 |     |            | 229,927 |
| Finance lease cost            |     |                                     |     |                                        |         |     |