Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 245

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 245
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 equity). As of March 31, 2024 and 2023, ordinary shares subject to possible redemption are 168,711 and 115,000 shares
as temporary equity, outside of the shareholders’ equity section of the Company’s consolidated balance sheet. The Company
recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable Common Stock to equal the
redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable ordinary shares are
affected by charges against additional paid-in capital or accumulated deficit if additional paid-in capital equals to zero. For the year
ended March 31, 2024, the Company recognized changes in redemption value of $12,652. On November 22, 2023, 115,000 ordinary
shares were fully redeemed for cash consideration of $ 163,905.

The Company follows the revenue accounting requirements
of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“Accounting Standards
Codification (“ASC”) 606”). The core principle underlying the revenue recognition of this ASU allows the Company to
recognize revenue that represents the transfer of goods and services to customers in an amount that reflects the consideration to which
the Company expects to be entitled in such exchange. This requires the Company to identify contractual performance obligations and determine
whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer.

To achieve that core principle, the Company applies
five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract
with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including
variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction
price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the
performance obligation.

The Company recognizes a contract with a customer
when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial
substance and collectability is probable.

Revenue recognition policies for each type of revenue stream
are as follows:

| (1) | Revenue from sales of console game, gaming hardware, and accessories |

The Company generates revenue from distributing
g