Company: GCL
Filing Date: 2025-07-31
Form Type: 424B3
Source: 0001213900-25-070094
Chunk: 187

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 424B3
Chunk 187
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 these sales arrangements, the gaming platforms are considered
as the Company’s customers.

The Company recognizes revenue
from game publishing at the point in time when control of the console game code is transferred to the Gaming Platform, which specifically
occurs when the console game code is activated. Since the transaction price for publishing varies and is determined based on a predetermined
rate applied to the Gaming Platform’s monthly sales, the Company recognizes revenue based on the consideration expected to be received
from the Gaming Platform.

The Company accounts for
revenue from game publishing on a gross basis as the Company is acting as a principal who is primarily responsible for fulfilling the
promise to publishing the game on the Gaming platform.

Cost of 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 when 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