Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 311

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 311
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Topic 606) (“Accounting Standards Codification (“ASC”) 606”). The core principle underlying
the revenue recognition of this ASU allows the Company to recognize revenue that represents the transfer of goods and services to customers
in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This requires the Company
to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based
on when control of goods and services transfers to a customer.

<div align='center'>F-68

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

To
achieve that core principle, the Company applies five-step model to recognize revenue from customer contracts. The 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 desk, chair and etc.

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
retail