Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 187

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 187
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 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.

F-17

GCL GLOBAL HOLDINGS LTD
AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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, and the customer does not have
control on the video content as it is produced. Therefore, none of the criteria of ASC 606-10-25-27 is met, and the