Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 220

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 220
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 method is the inventory
valuation method applied to these inventories. Inventories mainly include physical console
game compact disc, gaming hardware and accessories which are purchased from the Company’s
suppliers as merchandized goods. Inventories are reviewed for potential write-down for estimated
obsolescence or unmarketable inventories which equals the difference between the costs of
inventories and the estimated net realizable value based upon forecasts for future demand
and market conditions. When inventories are written down to net realizable value, it is not
marked up subsequently based on changes in underlying facts and circumstances. For the years
ended March 31, 2025, 2024 and 2023, $211,356, $468,941 and $288,604 of inventories write-down
were recorded, respectively.

Other receivables primarily
include receivables from the marketing expense related in promoting console game that the Company paid on behalf of vendors, and refundable
deposit such as rental deposit. The Company measures credit loss against its other receivables using the current expected credit loss
model under ASC 326. As of March 31, 2025 and 2024, the Company provided allowance for credit loss of $27,923 and $52,949, respectively.

Prepayments are mainly cash
deposited or advanced to suppliers for future inventory purchases. These amounts are refundable if the purchases are not completed and
bear no interest. For any prepayments determined by management that such advances will not be in receipts of inventories, services, or
refundable, the Company will recognize an allowance account to reserve such balances. Management regularly reviews the aging of such
balances and changes in payment and realization trends and records allowances when management believes collection or realization of amounts
due are at risk. Delinquent account balances are written-off against allowance after management has determined that the likelihood of
completion or collection is not probable. As of March 31, 2025 and 2024, the Company provided allowance related to prepayment of
$114,792 and $209,412, respectively

Property and equipment are
stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives
of the assets with no residual value. The estimated useful lives are as follows:

|                                 |     | Expected useful lives                |
| Office equipment                |     | 3 years                              |
| Furniture & fitting             |     | 3 years                              |