Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 247

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 247
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 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 remaining benefits.

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

| (3) | Revenue from game publishing |

The Company generates its revenue from game publishing
by providing a non-exclusive license to reproduce, publicly display and perform, transmit, sell, license and otherwise distribute the
PC games in object code form (“console game code”) to gaming platforms such as Sony’s PlayStation Network, Valve’s
Steam, and Microsoft’s Xbox for distribution. In this sales arrangement, the gaming platforms are considered as the Company’s
customers.

The Company recognizes revenue from game publishing
at the point in time when control of the console game code is transferred to the Gaming Platform, which specifically occurs when the console
game code has been activated. Since the transaction price for publishing varies and is determined based on a predetermined rate applied
to the Gaming Platform’s monthly sales, the Company recognizes revenue based on the consideration expected to be received from the Gaming
Platform.

<div align='center'>F-30

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

The Company accounts for revenue from game publishing
on a gross basis as the Company is acting as a principal who is primarily responsible for fulfilling the promise to publishing the game
on the Gaming platform.

Cost of revenue from revenue from game publishing consist
of game developing cost from developers.

| (4) | Video marketing campaign services |

The Company provides video marketing campaign services,
which include video production, content alteration based on the customer’s specifications, and video publishing on designated influencers’
social media platforms. The Company identifies video marketing campaign services as a single performance obligation because the services
in the contract cannot be distinct.

The customer cannot simultaneously receive and consume
the benefits provided by the Company throughout the performance obligation process, and the customer does not have control on the video
content as it is produced. Therefore, none