Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 307

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 307
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 credit loss of $27,264 and $52,949, respectively.

<div align='center'>F-65

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

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 September 30, 2024 and March 31, 2024, the Company provided allowance related
to prepayment of $20,113 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                              |
| Office and warehouse renovation |     | Shorter of the lease term or 3 years |

The
cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is
included in the consolidated statements of operation and comprehensive loss. Expenditures for maintenance and repairs are charged to
earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized.
The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates
of useful lives.

The
Company’s indefinite-lived intangible assets consisted of the console game codes. The console game codes represent sequences of
code providing users with access to specific video games. Acquired from vendors in batches, their primary purpose is for resale. Each
console game code grants single access right to the user and is individually identified at cost upon purchase from its vendor.

Each
console game code is defined as an intangible asset, due