Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 188

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 188
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 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.

F-18

GCL GLOBAL HOLDINGS LTD
AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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 prior to revenue recognition as contract liability until the revenue recognition performance obligations are
met. As of March 31, 2025 and 2024, the contract liabilities amounted to $505,323and $209,903,