Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 377

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 377
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ivatives and Hedging (“ASC 815”). The assessment considers whether the warrants and rights are freestanding financial instruments
pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants and rights meet all of the requirements
for equity classification under ASC 815, including whether the warrants and rights are indexed to the Company’s own common shares
and whether the warrant and rights holders could potentially require “net cash settlement” in a circumstance outside of the
Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment,
is conducted at the time of warrant and rights issuance and as of each subsequent quarterly period end date while the warrants and rights
are outstanding.

For issued or modified warrants
and rights that meet all of the criteria for equity classification, the warrants and rights are required to be recorded as a component
of additional paid-in capital at the time of issuance. For issued or modified warrants and rights that do not meet all the criteria for
equity classification, the warrants and rights are required to be treated as liabilities, and recorded at their initial fair value on
the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants and rights are recognized
as a non-cash gain or loss on the statements of operations.

The equity-linked warrants,
both Public and Private warrants, and rights are considered freestanding and outside the scope of ASC 480 as they are not mandatorily
redeemable, are exchanged on a fixed 1:1 ratio and do not obligate the Company to repurchase equity shares. The Company concluded that
the warrants and rights are equity classified under ASC 815 as the warrants and rights are indexed in the Company’s Class A
common stock.

Operating Segments

The Company operates as one
operating segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly
evaluated by the chief operating decision maker (“CODM”), which is the Company’s Chairman and Chief Executive Officer,
in deciding how to allocate resources and assess performance. The Company’s CODM evaluates the Company’s financial information
and resources and assesses the performance of these resources. The Company is not organized by market and is managed and operated as one
business. A single management team that reports to the CODM comprehensively manages the entire business. Accordingly, the Company does
not accumulate discrete financial information with respect to separate divisions and does not have separate