Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 312

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 312
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 none of the criteria of ASC 606-10-25-27 is
met, and the Company recognizes revenue from video marketing campaign services at a point in time when the customer takes control of
the video. The transfer of control typically occurs when customers are able to direct the use of and obtain substantially all of the
economic benefits of the video, which happens when the video production is completed and accepted by the customer.

Cost
of revenue from video marketing campaign service consist of video production related cost such as labor and production supplies.

| (5) | Social media advertising |

The
Company generates revenue from social media advertising by monetizing video content on social media platforms by allowing advertisement
to be displayed within the Company’s video posting during the playback process.

<div align='center'>F-70

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

Revenue
from social media advertising is recognized by the Company when it fulfills its performance obligation at a point in time, which occurs
when the Company grant the right to use of the license of the video content to the social media platform, and when the social media platform
can derive substantial economic benefit from monetizing the video content. The revenue generated is contingent on a profit- sharing arrangement
with the social media platform and is assessed based on multiple factors. These factors include viewer engagement, viewer location, the
type of advertisements, the number of advertisements engaged with, and more. The transaction price will be entitled to be received by
the Company upon monthly settlement with the social media platform. Consequently, the Company has determined that revenue from social
media advertising is recognized at a point in time when it is probable that a significant reversal of the revenue recognized will not
occur.

Cost
of revenue from social media marketing service consist of video production related cost such as labor and production supplies.

The
Company has elected to apply the practical expedient to expense costs as incurred for incremental costs to obtain a contract when the
amortization period would have been one year or less. As of September 30, 2024 and March 31, 2024, the Company did not incur
any incremental costs to obtain contract.

As
of September 30, 2024 and March 31, 2024, the Company did not have any contract assets.

The
Company recognized advance payments from its customer prior to revenue recognition as contract liability until the revenue recognition
performance