Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 315

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 315
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 Revenue from game publishing |

The
Company generates its revenue from game publishing by providing a non-exclusive license to reproduce, publicly display and perform, transmit,
sell, license and otherwise distribute the PC games in object code form (“console game code”) to gaming platforms such as
Sony’s PlayStation Network, Valve’s Steam, and Microsoft’s Xbox for distribution. In 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.

<div align='center'>F-70

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO UNAUDITED