Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 286

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 286
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 Deposit Insurance Corporation Limited (SDIC) insures
deposits in a Deposit Insurance (DI) Scheme member bank or finance /Company up to approximately $55,659 (SGD 75,000) per account. As of
March 31, 2024 and 2023, the Company had cash balance of $2,483,834 and $2,233,699 was maintained at DI Scheme banks in Singapore,
of $2,256,282 and $2,016,069 was subject to credit risk, respectively. The Hong Kong Deposit Protection Board pays compensation up to
a limit of $63,890 (HKD 500,000) if the bank with which an individual/a Company hold its eligible deposit fails. As of March 31,
2024 and 2023, cash balance of $135,184 and $289,859 was maintained at financial institutions in Hong Kong, of which $42,448 and $189,174
were subject to credit risk, respectively. The Malaysia deposit insurance corporation (PIDM) standard insurance amount is up to $52,938
(MYR 250,000) per depositor per insured bank. As of March 31, 2024 and 2023, the Company had cash balance of $58,041 and $15,029
was maintained at banks in Malaysia, of $1,663 and $0 was subject to credit risk. While management believes that these financial institutions
are of high credit quality, it also continually monitors their credit worthiness.

The Company is also exposed to risk from accounts
receivable and other receivables. These assets are subjected to credit evaluations. An allowance has been made for estimated unrecoverable
amounts which have been determined by reference to past default experience and the current economic environment.

Note 16 — Leases

As of March 31, 2024 and 2023, the Company
has engaged in multiple offices and warehouse leases which were classified as operating leases. In addition, the Company engaged in a
few automobiles lease under finance lease agreements.

The Company occupies various offices under operating
lease agreements with a term shorter than twelve months which it elected not to recognize lease assets and lease liabilities under
ASC 842. Instead, the Company recognized the lease payments in profit or loss on a straight-line basis over the lease term and variable
lease payments in the period in which the obligation for those payments is incurred.

The Company’s lease agreements do not contain
any material residual value