Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 316

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 316
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 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

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.

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 September 30, 2024 and March 31, 2024, the Company did not incur
any incremental costs to obtain contract.

As
of September 30, 2024 and March 31, 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 September 30, 2024 and March 31, 2024, the contract liabilities amounted to $1,779,725
and $209,903, respectively. For the six months ended September 30, 2024 and 2023, revenue recognized that was included in the beginning
period contract liabilities balance amounted to $208,010 and $363,726, respectively. As of September 30, 2024 and March 31,
2024, there were no contracts with performance obligations beyond 12 months for revenue recognition.

Disaggregated
information of revenues by products/services are as follows:

|                                      |     | For the Six Months Ended | September 30, 
          2024 |     |            | September 30, 
          2023 |
|:-------------------------------------|:----|:-------------------------|