Company: GCL
Filing Date: 2025-09-05
Form Type: F-1/A
Source: 0001213900-25-085150
Chunk: 202

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-05
Form: F-1/A
Chunk 202
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 equity classification. This assessment, which requires
the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while
the warrants are outstanding.

For issued or modified warrants
that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of equity at the time
of issuance. The Company determined that upon further review of the warrant agreements, the Company concluded that its warrants qualify
for equity accounting treatment.

Upon completion of the Business
Combination, all of RFAC’s public and private placement warrants remain outstanding were replaced by the Company’s public
and private placement warrants. The Company treated such warrants replacement as a warrant modification and recognized incremental fair
value of $ as a deemed dividend paid to the warrant holders.

Revenue recognition

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 contracts. The five-step model requires that the Company (i) identify
the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction
price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate
the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company
satisfies the performance obligation.

The Company recognizes a
contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified,
the contract has commercial substance and collectability is probable.

Revenue recognition policies for each type of
revenue stream are as follows:

| (1) | Revenue from sales of console game, gaming hardware, and accessories |

The
Company generates revenue from distributing gaming content that are compatible with major
gaming consoles such as Sony PlayStation