Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 224

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 224
---
 credit loss against its other receivables using the current expected credit loss
model under ASC 326. As of March 31, 2025 and 2024, the Company provided allowance for credit loss of $27,923 and $52,949, respectively.

Prepayments are mainly cash
deposited or advanced to suppliers for future inventory purchases. These amounts are refundable if the purchases are not completed and
bear no interest. For any prepayments determined by management that such advances will not be in receipts of inventories, services, or
refundable, the Company will recognize an allowance account to reserve such balances. Management regularly reviews the aging of such
balances and changes in payment and realization trends and records allowances when management believes collection or realization of amounts
due are at risk. Delinquent account balances are written-off against allowance after management has determined that the likelihood of
completion or collection is not probable. As of March 31, 2025 and 2024, the Company provided allowance related to prepayment of
$114,792 and $209,412, respectively

Property and equipment are
stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives
of the assets with no residual value. The estimated useful lives are as follows:

|                                 |     | Expected useful lives                |
| Office equipment                |     | 3 years                              |
| Furniture & fitting             |     | 3 years                              |
| Office and warehouse renovation |     | Shorter of the lease term or 3 years |

The cost and related accumulated
depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated
statements of operation and comprehensive income (loss). Expenditures for maintenance and repairs are charged to earnings as incurred,
while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also
re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful
lives.

<div align='center'>F-12

GCL GLOBAL HOLDINGS LTD AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

The Company’s indefinite-lived
intangible assets consisted of the console game codes. The console game codes represent sequences of code providing users with access
to specific video games. Acquired from vendors in batches, their primary purpose is for resale.