Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 163

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 163
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 $         | 11,644,702 |     | $           | 1,649,283 |     | $           | 46,830 |     | $         | — |

Commitment in publishing agreement

On December 18, 2024, we,
through our subsidiary 4Divinity SG, entered into a Publishing Agreement with NEKCOM Private Limited and its PRC affiliate (collectively,
“NEKCOM”), pursuant to which 4Divinity SG was appointed as the global publisher and distributor of the video game SHOWA American Story (the “Licensed Game”) for all platforms and territories, excluding certain regions previously licensed
to other parties. Under the terms of the agreement, 4Divinity SG committed to a fully recoupable minimum sales guarantee of $5,000,000,
payable in tranches as defined in the agreement. In addition, 4Divinity SG agreed to furnish a non-recoupable marketing budget of $5,000,000,
which will be used to support global marketing efforts for the Licensed Game. As of March 31, 2025, we had paid $3,000,000 of the minimum
sales guarantee, with the remaining amount paid on April 17, 2025.

Capital Expenditures

For the years ended March
31, 2025, 2024 and 2023, we purchased approximately $0.2 million, $0.3 million, and $0.5 million, respectively, of equipment mainly for
the use in our business daily operation.

Non-GAAP Performance Measures

To supplement our consolidated
financial statements, which are prepared and presented in accordance with U.S. GAAP, we use the following non-GAAP financial measures
for our consolidated results: EBITDA which represents net income (loss) before interest expense, provision for income taxes, depreciation
and amortization expenses. We believe that EBITDA helps understand and evaluate our core operating performance.

EBITDA does not represent
net income, as that term is defined under GAAP, and should not be considered as an alternative to net income (loss) as an indicator of
our operating performance. Additionally, EBITDA is not intended to be measures of free cash flow available for management or discretionary
use as such measures do not consider certain cash requirements such as capital expenditures, tax payments and debt service requirements.
In light of the foregoing limitations, you should not consider EBITDA as substitutes for, or superior to, net income