Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 247

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 247
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 in time based on consideration of when
the retailers or end users have an obligation to pay for the goods, and physical possession of, legal title to, and the risks and rewards
of ownership of the goods has been transferred, and the retailers or end users has accepted the goods.

For settlement arrangement under the fixed price
settlement, the transaction price is generally fixed and does not contain any variable considerations such as sales returns, discounts,
or rebates, as the Company settles the sales with customers on a sales contract basis.

For settlement arrangement under the variable price
settlement, the transaction price is subject to variation and is determined based on the retailer’s monthly sales. The pricing for
individual game codes is calculated by considering their wholesale price and the quantity sold. Additionally, a proportionate adjustment
is made based on the total sales of each specific game code. As a result, the consideration received from retailer can fluctuate, making
it a variable component of the overall consideration.

The Company accounts for revenue from sales of console
game code under both settlement arrangements as mentioned above on a gross basis as the Company is acting as a principal in these transactions
and is responsible for fulfilling the promise to provide specified goods, which the Company has control of the goods and has the ability
to direct the use of goods to obtain substantially all the benefits. In making this determination, the Company assesses whether it is
responsible to fulfil the performance obligation in these transactions, is subject to inventory risk, has latitude in establishing prices,
or has met several but not all of these indicators in accordance with ASC 606-10-55-36 through 40. The Company determined that it is primarily
responsible for fulfilling the promise to provide the specified good as the Company directly purchases the consoled game code from the
vendors prior to posting any sale to retailers or end users. Meanwhile, the Company maintained the console game code electronically which
demonstrates that Company has control over the goods and is subject to inventory risk. Furthermore, the Company has discretion in establishing
the price of the goods which has demonstrated that the Company has the ability to direct the use of the goods and obtain substantially
all of the remaining benefits.

Cost of revenue from revenue from sales of console
game code consist of cost of console game code purchased from vendor.

| (3) | 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