Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 114

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 4A
Chunk 114
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 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.

Investing activities

Net cash used in investing
activities was approximately $6.3 million for the year ended March 31, 2025 and was attributable to approximately $0.2 million in cash
used in purchase of equipment, approximately $0.4 million payment related to achievement of tranche 3 of the contingent consideration
in connection with the 2Game acquisition, approximately $0.4 million loan to third party and approximately $5.4 million cash payment in
connection with investment in Nekcom Inc.

Net cash used in investing activities was approximately $0.8 million
for the year ended March 31, 2024 and was attributable to approximately $0.3 in cash used in purchase of equipment and approximately $0.5
million payment related to achievement of tranche 3 of contingent consideration in connection with the 2Game acquisition.

Net cash used in investing
activities was approximately $0.6 million for the year ended March 31, 2023 and was attributable to approximately $0.5 million in purchase
of equipment and approximately $71,000 in purchase of long-term investment.

Financing activities

Net cash provided by financing
activities was approximately $33.6 million for the year ended March 31, 2025 and was primarily attributable to (i) approximately $31.7
million proceed received from bank loans; (ii) approximately $33.0 million proceeds from convertible notes, and (iii) approximately $0.6
million proceed received from reverse recapitalization; offset by (A) approximately $28.8