Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 156

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 156
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of our Singapore subsidiaries for the year ended March 31, 2024, as we expected to utilize the NOL against our taxable income in
the future and approximately $0.2 million decrease in current income tax as we had less taxable income for the year ended March 31, 2024.
In addition, the decrease of our provision for income tax were attributable to (1) 14.0% decrease of effective rate from tax rate
difference outside Singapore which was mainly due to NOL from GCL BVI and GCL Global with total amount of approximately $1.5 million.
Since GCL BVI and GCL Global were established in British Virgin Island and Cayman Island, respectively, they do not subject to income
tax due to local laws, and (2) 4.2% decrease of effective rate from loss from foreign exchange transaction which is non-deductible from
our Hong Kong subsidiaries. Given that we expect GCL BVI and GCL Global to continue incurring significant transaction costs related
to the Business Combination with RFAC, we anticipate that the recent decrease in our provision for income tax to be indicative a trend
in our future effective tax rates.

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Net (Loss) Income

We incurred a net loss of
approximately $2.0 million for the year ended March 31, 2024, while we have a net income of approximately $2.1 million
for the same period in 2023, representing a change of approximately $4.1 million, or 191.6%. Such change was mainly as a direct result
of the reasons discussed above.

Liquidity and Capital Resources

In assessing our liquidity,
we monitor and analyze our cash on-hand and our operating and capital expenditure commitments. Our liquidity needs are to meet our working
capital requirements, operating expenses, and capital expenditure obligations.

Despite an income from operation
of approximately $1.6 million for the year ended March 31, 2025, we have cash outflow from our operating activities of approximately
$10.3 million while our retained earnings and working capital were approximately $17.5 million and $9.7 million, respectively, as of
March 31, 2025. To support our business operation for the next twelve months, we had cash and cash equivalents, and restricted cash amounted
to approximately $21.3 million as of March 31, 2025, and accounts receivable, net amounted to approximately