Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 239

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 239
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'>F-24

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

For the Company’s non-wholly owned subsidiaries,
a non-controlling interest is recognized to reflect portion of equity that is not attributable, directly or indirectly, to the Company.
The cumulative results of operations attributable to non-controlling interests are also recorded as non-controlling interests in the Company’s
consolidated balance sheets and consolidated statements of operation and comprehensive loss. Cash flows related to transactions with non-controlling
interests are presented under financing activities in the consolidated statements of cash flows.

The chief executive officer is identified as the
Company’s chief operating decision-maker who reviews financial information presented on a consolidated basis, accompanied by disaggregated
information about revenues by different revenues streams for purposes of allocating resources and evaluating financial performance. Based
on qualitative and quantitative criteria established by Accounting Standards Codification (“ASC”) 280, “Segment Reporting”,
the Company considers itself to be operating within four operating and three reportable segments as set forth in Note 18.

Cash is carried at cost and represents cash on hand,
time deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months
or less. Cash equivalents consist of funds received from customers, which were held at the third-party platform’s account, and which
are unrestricted and immediately available for withdrawal and use.

Restricted cash consists of fixed deposits being
held as collateral to secure the banking facilities. As of March 31, 2024 and 2023, the Company had deposit amounted to $1,656,678
and $1,288,561, respectively, held in the bank as collateral to secure the banking facilities which the Company signed with HSBC Bank
and Citibank (referred to Note 10).

Accounts receivable are recognized and carried at
the original invoiced amount less an allowance for credit losses and do not bear interest. Customers who owed accounts receivables, are
granted credit terms based on their credit metrics. The Company adopted ASU No.2016-13 “Financial Instruments — Credit
Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASC Topic 326”) on its accounts receivable
using the modified retrospective approach, starting from April 1, 2021 and records the allowance for credit losses as an offset to
accounts receivable, and the estimated credit losses charged to the allowance is classified as