Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 234

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 234
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 but not all of these indicators in accordance with ASC 606-10-55-36 through 40.
The Company determined that it is primarily responsible for fulfilling the promise to provide the specified good as the Company directly
purchases the consoled game code from the vendors prior to posting any sale to retailers or end users. Meanwhile, the Company maintained
the console game code electronically which demonstrates that Company has control over the goods and is subject to inventory risk. Furthermore,
the Company has discretion in establishing the price of the goods which has demonstrated that the Company has the ability to direct the
use of the goods and obtain substantially all of the benefits.

<div align='center'>F-17

GCL GLOBAL HOLDINGS LTD AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

Cost of revenue from sales of console game code
consist of cost of console game codes purchased from vendors.

| (3) | Revenue from game publishing |

The Company generates its
revenue from game publishing by providing a non-exclusive license to reproduce, publicly display and perform, transmit, sell, license
and otherwise distribute the PC games in object code form (“console game code”) to gaming platforms such as Sony’s
PlayStation Network, Valve’s Steam, and Microsoft’s Xbox for distribution. In these sales arrangements, the gaming platforms
are considered as the Company’s customers.

The Company recognizes revenue
from game publishing at the point in time when control of the console game code is transferred to the Gaming Platform, which specifically
occurs when the console game code is activated. Since the transaction price for publishing varies and is determined based on a predetermined
rate applied to the Gaming Platform’s monthly sales, the Company recognizes revenue based on the consideration expected to be received
from the Gaming Platform.

The Company accounts for
revenue from game publishing on a gross basis as the Company is acting as a principal who is primarily responsible for fulfilling the
promise to publishing the game on the Gaming platform.

Cost of revenue from game publishing consist
of game developing cost from developers.

| (4) | Video marketing campaign services |

The Company provides video
marketing campaign services, which include video production, content alteration based on the customer’s specifications, and video
publishing on designated influencers’ social media platforms. The Company identifies video marketing campaign services as a single
performance obligation because the services in the contract cannot be distinct.

The customer cannot simultaneously
receive and consume the benefits provided by the Company throughout the performance obligation process,