Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 314

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 314
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 typically occurs
at a point in time based on consideration of when the retailers or end users have an obligation to pay for the goods, and physical possession
of, legal title to, and the risks and rewards of ownership of the goods has been transferred, and the retailers or end users has accepted
the goods.

For
settlement arrangement under the fixed price settlement, the transaction price is generally fixed and does not contain any variable considerations
such as sales returns, discounts, or rebates, as the Company settles the sales with customers on a sales contract basis.

For
settlement arrangement under the variable price settlement, the transaction price is subject to variation and is determined based on
the retailer’s monthly sales. The pricing for individual game codes is calculated by considering their wholesale price and the
quantity sold. Additionally, a proportionate adjustment is made based on the total sales of each specific game code. As a result, the
consideration received from retailer can fluctuate, making it a variable component of the overall consideration.

The
Company accounts for revenue from sales of console game code under both settlement arrangements as mentioned above on a gross basis as
the Company is acting as a principal in these transactions and is responsible for fulfilling the promise to provide specified goods,
of which the Company has control and has the ability to direct the use to obtain substantially all the benefits.

<div align='center'>F-69

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

In
making this determination, the Company assesses whether it is responsible to fulfil the performance obligation in these transactions,
is subject to inventory risk, has latitude in establishing prices, or has met several but not all of these indicators in accordance with
ASC 606-10-55-36 through 40. The Company determined that it is primarily responsible for fulfilling the promise to provide the specified
good as the Company directly purchases the consoled game code from the vendors prior to posting any sale to retailers or end users. Meanwhile,
the Company maintained the console game code electronically which demonstrates that Company has control over the goods and is subject
to inventory risk. Furthermore, the Company has discretion in establishing the price of the goods which has demonstrated that the Company
has the ability to direct the use of the goods and obtain substantially all of the benefits.

Cost
of revenue from sales of console game code consist of cost of console game codes purchased from vendors.

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