Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 152

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 152
---
venue to be distributed to developers as part of their development fee structure, and (3) 4.1% decrease in the gross profit margin
from advertising services due to less revenue from video marketing campaign services and less advertising income from social media.

Operating Expenses

Total operating expenses
increased by approximately $5.5 million, or 53.4%, to approximately $15.7 for the year ended March 31, 2024 from approximately
$10.2 million for the year ended March 31, 2023. The increase was mainly attributable to the following:

Approximately $0.1 million,
or 3.2%, decrease in selling expense was mainly attributable to approximately $0.6 million decrease in advertising and marketing expense
as we received more compensation from our vendors related to qualify reimbursable expense during the year ended March 31, 2024, offset
by $0.5 million increase in in sales commission and salary to sales department employees due to expansion of our business.

Approximately $5.6 million,
or 73.5%, increase in general and administrative expense was mainly attributable to increase of approximately $1.5 million in director
fee to compensate our director for service performed, approximately $2.2 million increase in salary expenses, entertainment expenses,
website maintenance expense, rent expense and other miscellaneous expenses due to our current business expansion, approximately $1.0 million
increase in other professional fee as we were preparing to become a listed public company in the United States, approximately $0.7 million
increase in amortization expense from intangible asset as we acquired additional intangible assets from business combination, and approximately
$0.2 million increase in bad debt expense as we made additional allowance for credit loss against long aging accounts receivable.

Other expense, net

For the year ended March 31,
2024, we have other income, net amounted to approximately $0.5 million, while for the year ended March 31, 2023, we have other
expense, net amounted to approximately $0.8 million, representing a net change of approximately $1.3 million or 157.9%. Such
change was attributable to recognition of approximately $1.0 million increase in other income, net, which was primarily due to the
$1.2 million received from our vendor who compensated our loss in prior period, approximately $0.7 million decrease in change
in fair value of consideration payable related to our acquisition of 2Game, offset