Company: GCL
Filing Date: 2025-09-05
Form Type: F-1/A
Source: 0001213900-25-085150
Chunk: 194

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-05
Form: F-1/A
Chunk 194
---
). The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics
exist, primarily based on similar business line, service or product offerings and on an individual basis when the Company identifies
specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Company
considers historical collectability based on past due status, the age of the accounts receivable balances, credit quality of the Company’s
customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecast of future economic conditions
and other factors that may affect the Company’s ability to collect from customers. As of March 31, 2025 and 2024, the Company
provided allowance for credit loss of $ and $, respectively.

Inventories, net

Inventories are stated at the lower of cost or net realizable value. Weighted average method is the inventory valuation method applied to these inventories. Inventories mainly include physical console game compact disc, gaming hardware and accessories which are purchased from the Company’s suppliers as merchandized goods. Inventories are reviewed for potential write-down for estimated obsolescence or unmarketable inventories which equals the difference between the costs of inventories and the estimated net realizable value based upon forecasts for future demand and market conditions. When inventories are written down to net realizable value, it is not marked up subsequently based on changes in underlying facts and circumstances. For the years ended March 31, 2025, 2024 and 2023, $, $ and $ of inventories write-down were recorded, respectively.

Other receivables and other current assets, net

Other receivables primarily
include receivables from the marketing expense related in promoting console game that the Company paid on behalf of vendors, and refundable
deposit such as rental deposit. The Company measures credit loss against its other receivables using the current expected credit loss
model under ASC 326. As of March 31, 2025 and 2024, the Company provided allowance for credit loss of $ and $, respectively.

Prepayments, net

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