Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 250

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 250
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,316 |
| Console game codes                    |     |                     |     52,588,862 |     |   |     28,575,826 |
| Console game – subtotal               |     |                     |     91,018,804 |     |   |     68,075,142 |
| Game publishing                       |     |                     |      3,431,680 |     |   |      6,103,312 |
| Video marketing campaign services     |     |                     |      2,128,589 |     |   |      2,486,844 |
| Social media advertising services     |     |                     |        587,500 |     |   |        778,857 |
| Media advertising services – subtotal |     |                     |      2,716,089 |     |   |      3,265,701 |
| Other revenue                         |     |                     |        368,128 |     |   |              — |
| Total revenues                        |     | $                   |     97,534,701 |     | $ |     77,444,155 |

The Company generally provides limited warranties
for its products sold. At the time a sale is recognized, the Company records estimated future warranty costs under ASC 460. Such estimated
costs for warranties are estimated at time of delivery and these warranties are not service warranties separately sold by the Company.
Generally, the estimated claim rates of warranty are based on actual warranty experience or the Company’s best estimate. As the
historical claim rates of warranty were deemed to be immaterial, the Company did not accrue warranty reserves as of March 31, 2024
and 2023

Advertising is mainly through online and offline
promotion activities. Advertisement expenses amounted to $1,547,129 and $2,111,178 for the years ended March 31, 2024 and 2023,
respectively.

Deferred merger costs consist primarily of expenses
paid to attorneys, underwriters, and others direct costs related to the Merger. Should the Merger prove to be unsuccessful, these deferred
costs, as well as additional expenses to be incurred, will be charged to expenses.

Full-time employees of the Company are entitled
to government-mandated defined contribution plan. The Company is required to accrue and pay for these benefits based on certain percentages
of the employees’ respective salaries, subject to certain ceilings, in accordance with