Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 213

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 213
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 Company’s investment
in Nekcom’s Series B Preferred Shares are classified as equity securities but do not meet the criteria to be considered in-substance
common stock under ASC 323-10-15-13. These shares possess substantive liquidation preferences, fixed returns, and conditional participation
rights that distinguish them from common stock. Consequently, the Nekcom investment is not accounted for under the equity method. As a
result, the investment Nekcom’s Series B Preferred Shares does not qualify for equity method accounting under ASC 323 and is instead
accounted for under ASC 321 as an equity investment to measure it at cost, with subsequent remeasurement to fair value only upon impairment
or when there are observable prince changes in orderly transactions for identical or similarly investments. As of the acquisition date,
the $7,500,000cash consideration, $364,229acquisition cost, and $7,500,000share consideration were determined to be included in the
initial investment cost. And the Company will assess the impairment as subsequent measurement. As of March 31, 2025, no impairment was
recorded against investment in Nekcom.

Investment in Cloudshelf Limited (“ Cloudshelf”)

On November 8, 2022, the Company
entered into a subscription and shareholders agreement with Cloudshelf, a private limited company incorporated in England and Wales. Pursuant
to the agreement, the Company subscribed for ordinary shares in Cloudshelf for a total consideration of $71,045, representing a13.5%
equity interest of Cloushelf.

As the Company does not have
significant influence over Cloudshelf, the investment is accounted for in accordance with ASC 321, The investment is measured at cost,
with subsequent remeasurement to fair value only upon impairment or when there are observable prince changes in orderly transactions for
identical or similarly investments. As of March 31, 2025, no impairment indicators were identified, and no loss was recorded.

Note 6 - Accounts receivable, net

As of March 31, 2025 and 2024, accounts receivables comprised of the following:

                                                           March 31,                      March 31,                  
                                                           2025                           2024                       
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Receivables from console game and console game code      $              23,121,281      $              15,123,775  
  Receivables from game