Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 250

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 250
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 game
on the Gaming platform.

Cost of revenue from revenue from game publishing consist
of game developing cost from developers.

| (4) | Video marketing campaign services |

The Company provides video marketing campaign services,
which include video production, content alteration based on the customer’s specifications, and video publishing on designated influencers’
social media platforms. The Company identifies video marketing campaign services as a single performance obligation because the services
in the contract cannot be distinct.

The customer cannot simultaneously receive and consume
the benefits provided by the Company throughout the performance obligation process, and the customer does not have control on the video
content as it is produced. Therefore, none of the criteria of ASC 606-10-25-27 is met, and the Company recognizes revenue from video marketing
campaign services at a point in time when the customer takes control of the video. The transfer of control typically occurs when customers
are able to direct the use of and obtain substantially all of the economic benefits of the video, which happens when the video production
is completed and accepted by the customer.

Cost of revenue from video marketing campaign service
consist of video production related cost such as labor and production supplies.

| (5) | Social media advertising |

The Company generates revenue from social media
advertising by monetizing video content on social media platforms by allowing advertisement to be displayed within the Company’s
video posting during the playback process.

Revenue from social media advertising is recognized
by the Company as it fulfills its performance obligation at a point in time, which occurs when the Company grant the right to use of the
license of the video content to the social media platform, and when the social media platform can derive substantial economic benefit
from monetizing the video content. The revenue generated is contingent on a profit-sharing arrangement with the social media platform
and is assessed based on multiple factors. These factors include viewer engagement, viewer location, the type of advertisements, the number
of advertisements engaged with, and more. The transaction price will be entitled to be received by the Company upon monthly settlement
with the social media platform. Consequently, the Company has determined that revenue from social media advertising is recognized at a
point in time when it is probable that a significant reversal of the revenue recognized will not occur.

Cost of revenue from social media marketing service
consist of video production related cost such as labor and production supplies.

The Company has elected to apply the practical expedient
to expense costs as incurred for incremental costs to obtain a contract when the amortization period would have been