Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 248

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 248
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 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 this sales arrangement, 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 has been 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.

<div align='center'>F-30

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

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 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 as it fulfills its performance obligation at a point in time, which occurs