Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 113

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 4A
Chunk 113
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, 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 31, 2023. The net cash used in operating activities was primarily attributable
to (i) approximately $8.5 million increase in accounts receivable, as a result of increase in our revenue, (ii) approximately $7.9 million
increase in indefinite-lived intangible assets as we as we maintain more console game code for resale, (iii) approximately $0.6 million
increase in receivables and other current assets due to payment of advertising fees on behalf of a vendor, (iv) approximately $0.7 million
decrease of operating lease liabilities as we remit timely payment in accordance with lease contract during the period, (v) approximately
$0.4 million increase in inventories, as we maintained more inventories for resale due to demand of our products,