Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 304

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 304
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IAL STATEMENTS</div>

Cash
is carried at cost and represents cash on hand. Cash equivalents consist of time deposits placed with banks or other financial institutions
and all highly liquid investments with an original maturity of three months or less. In addition, cash equivalents also consist of funds
received from customers, which were held at the third-party platform’s account, and which are unrestricted and immediately available
for withdrawal and use.

Restricted
cash consists of fixed deposits being held as collateral to secure the banking facilities. As of September 30, 2024 and March 31,
2024, the Company had deposit amounted to $2,577,553 and $1,656,678, respectively, held in the bank as collateral to secure the banking
facilities which the Company signed with HSBC Bank and Citibank (referred to Note 10).

Accounts
receivable are recognized and carried at the original invoiced amount less an allowance for credit losses and do not bear interest. Customers
who owed accounts receivables, are granted credit terms based on their credit metrics. The Company adopted ASU No.2016-13 “Financial
Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASC Topic 326”)
on its accounts receivable using the modified retrospective approach, starting from April 1, 2021 and records the allowance for
credit losses as an offset to accounts receivable, and the estimated credit losses charged to the allowance is classified as “general
and administrative” in the consolidated statements of operation and comprehensive loss. The Company assesses collectability by
reviewing accounts receivable on a collective basis where similar characteristics exist, primarily based on similar business line, service
or product offerings and on an individual basis when the Company identifies specific customers with known disputes or collectability
issues. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due
status, the age of the accounts receivable balances, credit quality of the Company’s customers based on ongoing credit evaluations,
current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the
Company’s ability to collect from customers. As of September 30, 2024 and March 31, 2024, the Company provided allowance
for credit loss of $341,854 and $325,457, respectively.

Inventories
are stated at the lower of cost or net realizable value. Weighted