Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 106

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 106
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 publishing business. Its mission is to partner with international game publishers and content development
studios to introduce new video game and entertainment properties to Asia’s fast-growing market of gamers, and to introduce original
Asian-developed content to the global market. In December 2024, 4Divinity UK was formed as a wholly-owned subsidiary of 4Divinity to
support GCL Group’s game publishing and development business in Europe. As of today, GCL Group has either published or co-published
nine game titles including, Black Myth Wukong (physical publishing), JDM: Japanese Drift Master – Rise of the Scorpion (Prologue), Atomic Heart, Daymare: 1994 Sandcastle, Figment 2: Creed Valley, Windstorm Collection, and Life in Willowdale. Atomic Heart
is a video game co-published with Focus Entertainment, an international game studio backed by Chinese multinational conglomerate, Tencent,
and an independent European video game developer and publisher.

We give Valve’s Steam, Microsoft Xbox and Sony’s PlayStation Network a non-exclusive license to reproduce, publicly display and perform, transmit, sell, license and otherwise distribute the PC games in object code form, and generate our games publishing revenue on these gaming platforms. We recognize our games publishing revenue 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. We recognized revenue from game publishing on a gross basis, and remit to the developer a development fee based on a certain percentage of the revenue generated from the gaming platform. The publishing agreements we have with the international game studios and developers give us the publishing rights, and typically contain, among other things, (i) a minimum sales guarantee payable upon achievement of certain milestones before the game is published, (ii) a minimum guaranteed development fee, (iii) a marketing budget, and (iv) localization services (with specified supported languages). These agreements typically cover all editions of the game available for release on platforms, including Steam, PlayStation and Xbox, within a certain pre-determined time period after the first commercial release of the game. In some cases, depending on the number of games sold, we may be entitled to recoup all or a portion of the marketing expenses used to promote the game from the sale proceeds of the game.

For the six months ended September 30, 2024 and September 30, 2023,
revenue generated from games publishing was approximately $0.9 million and $2