Company: GCL
Filing Date: 2025-07-31
Form Type: 424B3
Source: 0001213900-25-070094
Chunk: 176

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 424B3
Chunk 176
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 customers. As of March 31, 2025 and 2024, the Company provided allowance for credit loss of $248,956
and $325,457, respectively.

Inventories are stated at
the lower of cost or net realizable value. Weighted average method is the inventory valuation method applied to these inventories. Inventories
mainly include physical console game compact disc, gaming hardware and accessories which are purchased from the Company’s suppliers
as merchandized goods. Inventories are reviewed for potential write-down for estimated obsolescence or unmarketable inventories which
equals the difference between the costs of inventories and the estimated net realizable value based upon forecasts for future demand and
market conditions. When inventories are written down to net realizable value, it is not marked up subsequently based on changes in underlying
facts and circumstances. For the years ended March 31, 2025, 2024 and 2023, $211,356, $468,941 and $288,604 of inventories write-down
were recorded, respectively.

Other receivables primarily
include receivables from the marketing expense related in promoting console game that the Company paid on behalf of vendors, and refundable
deposit such as rental deposit. The Company measures credit loss against its other receivables using the current expected credit loss
model under ASC 326. As of March 31, 2025 and 2024, the Company provided allowance for credit loss of $27,923 and $52,949, respectively.

Prepayments are mainly cash
deposited or advanced to suppliers for future inventory purchases. These amounts are refundable if the purchases are not completed and
bear no interest. For any prepayments determined by management that such advances will not be in receipts of inventories, services, or
refundable, the Company will recognize an allowance account to reserve such balances. Management regularly reviews the aging of such balances
and changes in payment and realization trends and records allowances when management believes collection or realization of amounts due
are at risk. Delinquent account balances are written-off against allowance after management has determined that the likelihood of completion
or collection is not probable. As of March 31, 2025 and 2024, the Company provided allowance related to prepayment of $114,792 and
$209,412, respectively

Property and equipment are
stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful