Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 238

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 238
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 of March 31, 2024 and 2023, the Company had deposit amounted to $1,656,678
and $1,288,561, respectively, held in the bank as collateral to secure the banking facilities which the Company signed with HSBC Bank
and Citibank (referred to Note 10).

Accounts receivable are recognized and carried at
the original invoiced amount less an allowance for credit losses and do not bear interest. Customers who owed accounts receivables, are
granted credit terms based on their credit metrics. The Company adopted ASU No.2016-13 “Financial Instruments — Credit
Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASC Topic 326”) on its accounts receivable
using the modified retrospective approach, starting from April 1, 2021 and records the allowance for credit losses as an offset to
accounts receivable, and the estimated credit losses charged to the allowance is classified as “general and administrative”
in the consolidated statements of operation and comprehensive loss. The Company assesses collectability by reviewing accounts receivable
on a collective basis where similar characteristics exist, primarily based on similar business line, service or product offerings and
on an individual basis when the Company identifies specific customers with known disputes or collectability issues. In determining the
amount of the allowance for credit losses, the Company considers historical collectability based on past due status, the age of the accounts
receivable balances, credit quality of the Company’s customers based on ongoing credit evaluations, current economic conditions,
reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect
from customers. Under the new accounting guidance, the Company measures credit losses on its accounts receivable using the current expected
credit loss model under ASC 326. As of March 31, 2024 and 2023, the Company provided allowance for credit loss of $325,457 and $55,533,
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