Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 244

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 244
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 AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

Contingent consideration for acquisition was valued
at the time of acquisitions and each of the financial statement date, using unobservable inputs and undiscounted cash flow methodology.
The determination of the fair value is based on discounted cash flows, the key assumptions take into consideration the probability of
meeting each performance target and the discount factor.

The Company accounts for its ordinary shares subject
to possible redemption in accordance with the guidance in ASC Topic 480 “Distinguishing Liabilities from Equity”, where equity
interests are determined to be conditionally redeemable upon the occurrence of certain events that are not solely within the control of
the Group, and upon such event, the shares would become redeemable at the option of the holders, they are classified as mezzanine equity
(temporary equity). As of March 31, 2024 and 2023, ordinary shares subject to possible redemption are 168,711 and 115,000 shares
as temporary equity, outside of the shareholders’ equity section of the Company’s consolidated balance sheet. The Company
recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable Common Stock to equal the
redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable ordinary shares are
affected by charges against additional paid-in capital or accumulated deficit if additional paid-in capital equals to zero. For the year
ended March 31, 2024, the Company recognized changes in redemption value of $12,652. On November 22, 2023, 115,000 ordinary
shares were fully redeemed for cash consideration of $ 163,905.

The Company follows the revenue accounting requirements
of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“Accounting Standards
Codification (“ASC”) 606”). The core principle underlying the revenue recognition of this ASU allows the Company to
recognize revenue that represents the transfer of goods and services to customers in an amount that reflects the consideration to which
the Company expects to be entitled in such exchange. This requires the Company to identify contractual performance obligations and determine
whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer.

To achieve that core principle, the Company applies
five-step model to recognize revenue from customer