Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 235

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 235
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 and the customer does not have
control on the video content as it is produced. Therefore, none of the criteria of ASC 606-10-25-27 is met, and the Company recognizes
revenue from video marketing campaign services at a point in time when the customer takes control of the video. The transfer of control
typically occurs when customers are able to direct the use of and obtain substantially all of the economic benefits of the video, which
happens when the video production is completed and accepted by the customer.

Cost of revenue from video
marketing campaign service consist of video production related cost such as labor and production supplies.

| (5) | Social media advertising |

The Company generates revenue
from social media advertising by monetizing video content on social media platforms by allowing advertisement to be displayed within
the Company’s video posting during the playback process.

Revenue from social media
advertising is recognized by the Company when it fulfills its performance obligation at a point in time, which occurs when the Company
grant the right to use of the license of the video content to the social media platform, and when the social media platform can derive
substantial economic benefit from monetizing the video content. The revenue generated is contingent on a profit- sharing arrangement
with the social media platform and is assessed based on multiple factors. These factors include viewer engagement, viewer location, the
type of advertisements, the number of advertisements engaged with, and more. The transaction price will be entitled to be received by
the Company upon monthly settlement with the social media platform. Consequently, the Company has determined that revenue from social
media advertising is recognized at a point in time when it is probable that a significant reversal of the revenue recognized will not
occur.

Cost of revenue from social
media marketing service consist of video production related cost such as labor and production supplies.

<div align='center'>F-18

GCL GLOBAL HOLDINGS LTD AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

The Company has elected
to apply the practical expedient to expense costs as incurred for incremental costs to obtain a contract when the amortization period
would have been one year or less. As of March 31, 2025, 2024 and 2023, the Company did not incur any incremental costs to obtain contract.

As of March 31, 2025 and 2024, the Company did
not have any contract assets.

The Company recognized advance
payments from its customer