Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 102

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 4A
Chunk 102
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 revenue
from console games and game publishing.

For the year ended March
31, 2025, our overall gross margin increased slightly to 15.0% from 13.7% for the year ended March 31, 2024, primarily reflecting our
ability to maintain stable pricing and cost structure across our major segments, including console game and game publishing.

Operating Expenses

Total operating expenses increased by approximately $2.3 million, or
16.5%, to approximately $18.0 million for the year ended March 31, 2025 from approximately $15.7 million for the year ended March 31,
2024. The increase was mainly attributed to the following:

Approximately $34,000, or
1.3%, decrease in selling expense was mainly attributed to a reduction of approximately $642,000 in sales commissions and salaries as
part of our efforts to improve operating efficiency in sales activities, offset by an increase of approximately $608,000 in advertising
and marketing expenses as we increase spending in promoting our brand and products.

Approximately $2.3
million, or 17.8%, increase in general and administrative expense was mainly attributed to increase of approximately $2.6 million
increase in salary expenses, travel expense, depreciation expense, software development expense, and other office related expense
due to our current business expansion, approximately $1.3 million increase professional fee, primarily due to costs incurred in
connection with the completion of the merger with RFAC offset by approximately $1.1 million decrease in director fee.

Other income, net

For the year ended March 31, 2025 and 2024, we have other income, net
amounted to approximately $2.9 million and $0.5 million, respectively, representing an increase of approximately $2.4 million or 504.8%.
The increase was attributable to recognition of approximately $4.9 million gain from change in fair value of convertible notes and derivative
liabilities, while offset by approximately $0.4 million decrease in other income, net, which was primarily due to the decrease of marketing
revenue recognized from our vendor who compensated our marketing expense incurred from prior period, approximately $1.8 million increase
in interest expense due to increased debt financing in current period and approximately $1.6 million of finance cost related to debt issuance
cost from issuance of the convertible notes, and approximately $0.3 million increase in loss from change in fair value of consideration
pay