Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 159

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 159
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 and derivative liabilities, offset
by (A) net income of approximately $5.0 million, (B) approximately $2.9 million of non-cash items such as deprecation of property and
equipment, amortization of intangible assets, amortization of right of use assets, and change in fair value of acquisition payable, (C)
approximately $21.0 million increase in accounts payable, as our third party granted us credit terms to allow us additional liquidity
and flexibility in managing short-term cash flow needs

Net cash provided by operating
activities was approximately $1.3 million for the year ended March 31, 2024. The net cash provided by operating activities was primarily
attributable to (i) approximately $3.2 million in non-cash items which included depreciation expense, amortization expense, provision
for credit loss, loss from disposal of properties and equipment, and change in fair value of contingent consideration for acquisition,
(ii) approximately $3.7 million decrease in indefinite-lived intangible assets as a result of increased revenue from sales for console
game code, (iii) approximately $1.0 million increase in accounts payable including related party as we increase our purchase on account
to meet with the demand of our product, (iv) approximately $2.5 million increase in other payable and accrued liabilities as we incurred
more accrued expense related to our operations, and (v) approximately $0.3 million decrease in other receivable to other current asset
as more prepaid expense and prepaid income tax were utilized in current period, and we collect more balance due from vendor for marketing
expense paid on behalf from prior period, offset by (A) approximately $2.0 million net loss, (B) approximately $0.7 million increases
in deferred tax benefit as we have more net operating loss that can be utilized for offset taxable income, (C) approximately $0.7 million
increase in accounts receivable as a result of increase in our revenue, (D) approximately $1.6 million increase in inventories as we
maintain higher inventory level to meet with the demand, (E) approximately $3.4 million increase in prepayment to our vendors as we made
more advance payments to vendors to secure our purchases, and (F) approximately $0.8 million decrease in operating lease liability as
we remit timely payment in accordance with lease contract during the period.

Net cash used in operating
activities was approximately $4.4 million for the year ended March