Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 239

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 239
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will recognize an allowance account to reserve such balances. Management regularly reviews the aging of such balances and changes in payment
and realization trends and records allowances when management believes collection or realization of amounts due are at risk. Delinquent
account balances are written-off against allowance after management has determined that the likelihood of completion or collection is
not probable. As of March 31, 2024 and 2023, the Company provided allowance related to prepayment of $209,412 and $51,755, respectively.

Property and equipment are stated at cost less accumulated
depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with no residual value.
The estimated useful lives are as follows:

|                                 |     | Expected useful lives                |
| Office equipment                |     | 3 years                              |
| Furniture & fitting             |     | 3 years                              |
| Office and warehouse renovation |     | Shorter of the lease term or 3 years |

The cost and related accumulated depreciation of
assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of operation
and comprehensive loss. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments,
which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to
determine whether subsequent events and circumstances warrant revised estimates of useful lives.

The Company’s indefinite-lived intangible
assets consisted of the console game codes. The console game codes represent sequences of code providing users with access to specific
video games. Acquired from vendors in batches, their primary purpose is for resale. Each console game code grants single access right
to the user and is individually identified at cost upon purchase from its vendor.

Each console game code is defined as an intangible
asset, due to its lack of physical form. The useful life of an intangible asset should be considered indefinite if no legal, regulatory,
contractual, competitive, economic, or other factors limit its useful life to the reporting entity in accordance with ASC 350-30-35-4.
Consequently, each console game code is recorded at cost on the Company’s consolidated balance sheet and is not subject to amortization.
Instead, the cost of each game code will be transferred to cost of goods sold upon the sale of each individual code. Additionally, the
remaining balance of the console game codes will continue to generate cash