Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 237

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 237
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 executive officer is identified as the
Company’s chief operating decision-maker who reviews financial information presented on a consolidated basis, accompanied by disaggregated
information about revenues by different revenues streams for purposes of allocating resources and evaluating financial performance. Based
on qualitative and quantitative criteria established by Accounting Standards Codification (“ASC”) 280, “Segment Reporting”,
the Company considers itself to be operating within four operating and three reportable segments as set forth in Note 18.

Cash is carried at cost and represents cash on hand,
time deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months
or less. Cash equivalents consist of funds received from customers, which were held at the third-party platform’s account, and which
are unrestricted and immediately available for withdrawal and use.

Restricted cash consists of fixed deposits being
held as collateral to secure the banking facilities. As 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