Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 325

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 325
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 |  (9,796 | ) |
| Other payable               |     |             | (23,896 | ) |
| Deferred tax liability      |     |             | (23,034 | ) |
| Total liabilities           |     |             | (56,726 | ) |
| Total net assets of Starry  |     |             | 295,673 |   |
| Goodwill                    |     | $           | 268,873 |   |

The
purchase price was allocated to the identifiable intangible assets acquired and liabilities assumed based on their acquisition date estimated
fair values. The identifiable intangible assets principally included licenses, with estimated useful lives of 1.0 years based on the
expected future economic benefit of the assets and are being amortized over the estimated useful life in proportion to the economic benefits
consumed using the straight-line method.

The
Company, with the assistance of a third-party appraiser, assessed the fair value of the 100% equity interest, and identifiable intangible
assets acquired, in Starry through using income approach based on a number of factors including in the valuations from the third-party
appraiser. The significant assumptions used by the Company include financial forecast and discount rate.

The
fair value of the licenses was estimated using a relief-from-royalty method. This method calculates fair value by assuming that if the
license were to be acquired from a third-party owner, a royalty rate on revenue would be charged for the privilege of using the asset.
Therefore, the fair value of the licenses represents the present value of the after-tax royalties saved as a result of owning the legal
right to utilize the licenses.

The
goodwill, which is not deductible for income tax purposes, is primarily attributed to the enhanced brand recognition expected from integrating
Starry’s operations. The acquisition of Starry is strategically aimed at leveraging its expertise in jewelry and accessories retail.
By collaborating with Starry, the Company plans to create unique, game character-inspired jewelry and accessories. This collaboration
will not only promote and market certain games but also expand the Company’s customer base. The synergy between the gaming operations
and the jewelry business is expected to increase brand visibility and appeal to a broader demographic, thereby enhancing brand recognition.

— Acquisition of Martiangear

On
July 25, 2023, the Company through its subsidiary, Titan Digital, entered into a sale and purchase agreements (“SPA2”)
with two third parties (“Vendors”) to acquire 100% equity interest of