Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 306

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 306
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and administrative” in the consolidated statements of operation and comprehensive loss. The Company assesses collectability by
reviewing accounts receivable on a collective basis where similar characteristics exist, primarily based on similar business line, service
or product offerings and on an individual basis when the Company identifies specific customers with known disputes or collectability
issues. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due
status, the age of the accounts receivable balances, credit quality of the Company’s customers based on ongoing credit evaluations,
current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the
Company’s ability to collect from customers. As of September 30, 2024 and March 31, 2024, the Company provided allowance
for credit loss of $341,854 and $325,457, respectively.

Inventories
are stated at the lower of cost or net realizable value. Weighted average method is the inventory valuation method applied to these inventories.
Inventories mainly include physical console game compact disc, gaming hardware and accessories which are purchased from the Company’s
suppliers as merchandized goods. Inventories are reviewed for potential write-down for estimated obsolescence or unmarketable inventories
which equals the difference between the costs of inventories and the estimated net realizable value based upon forecasts for future demand
and market conditions. When inventories are written down to net realizable value, it is not marked up subsequently based on changes in
underlying facts and circumstances. For the six months ended September 30, 2024 and 2023, $141,047 and $474,364 of inventories write-
down were recorded, respectively.

Other
receivables primarily include receivables from the marketing expense related in promoting console game that the Company paid on behalf
of vendors, and refundable deposit such as rental deposit. Starting from April 1, 2021, the Company adopted ASC Topic 326 on its
other receivables using the modified retrospective approach. The new credit loss guidance replaces the old model for measuring the allowance
for credit losses with a model that is based on the expected losses rather than incurred losses. Under the new accounting guidance, the
Company measures credit losses on its other receivables using the current expected credit loss model under ASC 326. As of September 30,
2024 and March 31, 2024, the Company provided allowance for