Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 248

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 248
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 accepted the goods. Revenue is recognized net of estimates of variable consideration, including product returns, and
customer discounts. Historically, the product return was deemed to be immaterial.

The Company determined that the shipping and handling
activities are performed before the customer obtains control of the good. The Company elect to account for shipping and handling as activities
to fulfill the promise to transfer the good, and accrue the related shipping cost.

<div align='center'>F-29

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

Cost of revenue from sales of console game, gaming
hardware, and accessories consist of cost of purchase of console game compact discs, gaming hardware and accessories from vendors.

| (2) | Revenue from sales of console game code |

The Company derives its revenue from the sale of
console game codes through the following settlement arrangement: (1) fixed price settlement with sales price being predetermined
in the contract, and (2) variable price settlement with sales price being variable and to be settled based on retailer’s monthly
sales.

The Company recognized the revenue from sales of
console game code at a point in time when control of the goods is passed to retailers or end users, which is the point in time that the
customers are able to direct the use of and obtain substantially all of the economic benefit of the goods after the console game code
was E-delivered to the retailers or end users. The transfer of control typically occurs at a point in time based on consideration of when
the retailers or end users have an obligation to pay for the goods, and physical possession of, legal title to, and the risks and rewards
of ownership of the goods has been transferred, and the retailers or end users has accepted the goods.

For settlement arrangement under the fixed price
settlement, the transaction price is generally fixed and does not contain any variable considerations such as sales returns, discounts,
or rebates, as the Company settles the sales with customers on a sales contract basis.

For settlement arrangement under the variable price
settlement, the transaction price is subject to variation and is determined based on the retailer’s monthly sales. The pricing for
individual game codes is calculated by considering their wholesale price and the quantity sold. Additionally, a proportionate adjustment
is made based on the total sales of each specific game code. As a result, the consideration received from retailer can fluctuate, making
it a variable component of the overall consideration.

The Company accounts for