Company: GCL
Filing Date: 2025-09-05
Form Type: F-1/A
Source: 0001213900-25-085150
Chunk: 252

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-05
Form: F-1/A
Chunk 252
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 of $ between the fair value of the consideration received and the adjustment to non-controlling interest
was recorded as an increase to additional paid-in capital.

F-45 GCL GLOBAL HOLDINGS LTD AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

On December 12, 2024, Titan Digital sold its entire equity interest in Martiangear to GCL Global SG for total consideration of SGD10. As a result, the Company increased its equity interest in Martiangear to % and derecognized $ of non-controlling interest, while the same amount was recorded as a decrease to additional paid-in capital.

On March 19, 2025, GCL Global
SG acquired an additional % equity interest in 2Game for total cash consideration of $. As a result, GCL Global SG increased
its ownership interest in 2Game from % to %, and $ of non-controlling interest was derecognized. The difference of $
was recorded as a decrease to additional paid-in capital. In addition, the Company recognized a derivative asset related to a contractual
buy-back option and obligation (“Buy-Back Feature”) embedded in the agreement. Under the terms of the agreement, the Company
has the sole discretion to exercise the buy-back option or may enforce a buy-back obligation requiring the minority shareholders of 2Game
to repurchase the acquired shares at a specified premium if certain financial targets are not met within the twelve months ended March
31, 2026. In accordance with ASC 815-40 “Derivatives and Hedging,” the Company determined that the Buy-Back Feature met the
definition of a derivative, and therefore need to bifurcate and separately accounted for. As a result, the Buy-Back feature is recognized
as a derivative asset, measured initially and subsequently at fair value, with changes in fair value recognized in the consolidated statements
of operations and comprehensive income (loss) in each reporting period until the obligation is settled or expires.

As of March 31, 2025, the
fair value of the Buy-Back Feature was determined to be $. The valuation was performed using a weighted average probability scenario
analysis, incorporating two mutually exclusive outcomes: (i) if the performance targets are not met, the fair value was calculated using
a forward pricing model; and (ii) if the performance targets are met, the fair value was estimated using the Black-Scholes option pricing
model. A probability of % was assigned to each scenario