Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 317

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 317
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 include exchange of the returned products. As a result, the
right of return assets and related refund liabilities is estimated and recorded as reduction in revenue, if necessary. The Company uses
its accumulated historical experience to estimate the number of returns on a portfolio level using the expected value method.

Cost
of revenue

Cost of revenues consists mainly of
purchases, rental costs, depreciation of property and equipment, freight and handling charges, and other expenses directly attributable
to the sale of goods.

Employee benefit expenses

The Company maintains a government
mandated employee provident fund scheme to cover employees. The employee provident fund schemes are considered a defined contribution
plan. Employer and employee contributions are made based on various percentages of salaries and wages that vary based on employee age
and other factors. The Company has no further payment obligations once the contributions have been paid.

<div align='center'>F-73

BAN LEONG TECHNOLOGIES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in Singapore dollars (“$”)</div>

| 2. | Summary                                        
 of significant accounting policies (continued) |

Income taxes

The Company follows the liability method
of accounting for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”). Under this method, deferred tax assets
and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using
enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation
allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or
all, of the deferred tax assets will not be realized. The assessment of realizability of deferred tax assets involves significant assumptions
used in the projection of future taxable income and the future reversal pattern of taxable temporary differences. The effect on deferred
taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate.

The Company accounted for uncertainties
in income taxes in accordance with ASC 740. The amount of interest expense is computed by applying the applicable statutory rate of interest
to the difference between the tax position recognized and the amount previously taken or expected to be taken in a tax return. Interest
and penalties recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive income as income tax
expense.

In accordance with the provisions of
ASC 740,