Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 246

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 246
---
aming 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 accepted the goods. Revenue is recognized net of estimates of variable consideration, including product returns, and
customer discounts. Historically, the product return was deemed to be immaterial.

The Company determined that the shipping and handling
activities are performed before the customer obtains control of the good. The Company elect to account for shipping and handling as activities
to fulfill the promise to transfer the good, and accrue the related shipping cost.

<div align='center'>F-29

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

Cost of revenue from sales of console game, 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, 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 after the console game code
was E-delivered to the retailers or end users. The transfer of control typically occurs at a point