Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 310

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 310
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, gaming hardware, and accessories consist of cost of purchase of console game compact discs, gaming
hardware and accessories from vendors.

| (2) | Revenue from sales of console game code |

The
Company derives its revenue from the sale of console game codes through the following settlement arrangement: (1) fixed price settlement
with sales price being predetermined in the contract, and (2) variable price settlement with sales price being variable and to be
settled based on retailer’s monthly sales.

The
Company recognized the revenue from sales of console game code at a point in time when control of the goods is passed to retailers or
end users, generally after the console game code was E-delivered to the retailers or end users, which is the point in time that the customers
are able to direct the use of and obtain substantially all of the economic benefit of the goods. The transfer of control typically occurs
at a point in time based on consideration of when the retailers or end users have an 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 or end users has accepted
the goods.

For
settlement arrangement under the fixed price settlement, the transaction price is generally fixed and does not contain any variable considerations
such as sales returns, discounts, or rebates, as the Company settles the sales with customers on a sales contract basis.

For
settlement arrangement under the variable price settlement, the transaction price is subject to variation and is determined based on
the retailer’s monthly sales. The pricing for individual game codes is calculated by considering their wholesale price and the
quantity sold. Additionally, a proportionate adjustment is made based on the total sales of each specific game code. As a result, the
consideration received from retailer can fluctuate, making it a variable component of the overall consideration.

The
Company accounts for revenue from sales of console game code under both settlement arrangements as mentioned above on a gross basis as
the Company is acting as a principal in these transactions and is responsible for fulfilling the promise to provide specified goods,
of which the Company has control and has the ability to direct the use to obtain substantially all the benefits.

<div align='center'>F-69

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

In
making this determination, the Company assesses whether it is responsible to fulfil the