Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 247

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 247
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09, Revenue from Contracts with Customers (Topic 606) (“Accounting Standards
Codification (“ASC”) 606”). The core principle underlying the revenue recognition of this ASU allows the Company to
recognize revenue that represents the transfer of goods and services to customers in an amount that reflects the consideration to which
the Company expects to be entitled in such exchange. This requires the Company to identify contractual performance obligations and determine
whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer.

To achieve that core principle, the Company applies
five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract
with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including
variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction
price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the
performance obligation.

The Company recognizes a contract with a customer
when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial
substance and collectability is probable.

Revenue recognition policies for each type of revenue stream
are as follows:

| (1) | Revenue from sales of console game, gaming hardware, and accessories |

The Company generates revenue from distributing
gaming content that are compatible with major gaming consoles such as Sony PlayStation, Microsoft Xbox, and personal computers (“PC”)
to retailers. Additionally, the Company is involved in the sale of gaming hardware and accessories, primarily consisting of controllers,
adapters, headsets, gaming desk, chair and etc.

The Company recognized the revenue from sales of
console game, gaming hardware, and accessories at a point in time when control of the product is passed to the retailers, which is the
point in time that the retailers are able to direct the use of and obtain substantially all of the economic benefit of the goods after
the retailers pick up the products or the Company delivers the products to the retailers’ appointed forwarding agent. The transfer
of control typically occurs at a point in time based on consideration of when the retailers have the 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
and end users have