Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 157

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 157
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 have more net operating loss that can be utilized for offset taxable income, (C) approximately $0.7 million
increase in accounts receivable as a result of increase in our revenue, (D) approximately $1.6 million increase in inventories as we
maintain higher inventory level to meet with the demand, (E) approximately $3.4 million increase in prepayment to our vendors as we made
more advance payments to vendors to secure our purchases, and (F) approximately $0.8 million decrease in operating lease liability as
we remit timely payment in accordance with lease contract during the period.

Net cash used in operating
activities was approximately $4.4 million for the year ended March 31, 2023. The net cash used in operating activities was primarily
attributable to (i) approximately $8.5 million increase in accounts receivable, as a result of increase in our revenue, (ii) approximately
$7.9 million increase in indefinite-lived intangible assets as we as we maintain more console game code for resale, (iii) approximately
$0.6 million increase in receivables and other current assets due to payment of advertising fees on behalf of a vendor, (iv) approximately
$0.7 million decrease of operating lease liabilities as we remit timely payment in accordance with lease contract during the period,
(v) approximately $0.4 million increase in inventories, as we maintained more inventories for resale due to demand of our products, and
(vi) approximately $0.3 million non-cash item of deferred tax benefit, offset by (A) net income of approximately $2.1 million, (B) approximately
$3.1 million of non-cash items such as deprecation of property and equipment, amortization of intangible assets, amortization of right
of use assets, provision for doubtful accounts, change in fair value of acquisition payable and impairment of the inventories, (C) approximately
$22.1 million increase in accounts payable, as our third party and related party vendors granted us credit terms to allow us additional
time to pay for our purchases, (D) approximately $0.5 million increase in tax payables as we incurred more taxable income
subject to income tax, and (E) approximately $0.3 million increase in contract liabilities, as we collected more deposit from
our customer in advance for future sales.

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Investing activities

Net cash used