Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 185

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 185
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 five-step model requires that the Company (i) identify
the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price,
including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate
the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company
satisfies the performance obligation.

The Company recognizes a
contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified,
the contract has commercial substance and collectability is probable.

Revenue recognition policies for each type of
revenue stream are as follows:

  (1)      Revenue from sales of console game, gaming hardware, and accessories  

The Company generates revenue
from distributing gaming content that are compatible with major gaming consoles such as Sony PlayStation, Microsoft Xbox, and personal
computers (“ PC”) to retailers. Additionally, the Company is involved in the sale of gaming hardware and accessories, primarily
consisting of controllers, adapters, headsets, gaming desks and chairs, etc.

F-16

GCL GLOBAL HOLDINGS LTD
AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS

The Company recognized the
revenue from sales of console game, gaming hardware, and accessories at a point in time when control of the product is passed to the retailers,
generally after the retailers pick up the products or the Company delivers the products to the retailers’ appointed forwarding agent,
which is the point in time that the retailers are able to direct the use of and obtain substantially all of the economic benefit of the
goods. The transfer of control typically occurs at a point in time based on consideration of when the retailers have the obligation to
pay for the goods, and physical possession of, legal title to, and the risks and rewards of ownership of the goods has been transferred,
and the retailers have accepted the goods. Revenue is recognized net of estimates of variable consideration, including product returns,
and customer discounts. Historically, the product return was immaterial.

The Company determined that
the shipping and handling activities are performed before the customer obtains control of the good. The Company elects to account for
shipping and handling as activities to fulfill the promise to transfer the good, and accrue the related shipping cost.

Cost of revenue from sales
of console game, gaming hardware, and accessories consist of cost of