Company: GCL
Filing Date: 2025-09-05
Form Type: F-1/A
Source: 0001213900-25-085150
Chunk: 204

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-05
Form: F-1/A
Chunk 204
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 end users have an obligation to pay for the goods, and physical possession of, legal
title to, and the risks and rewards of ownership of the goods has been transferred, and the retailers or end users has accepted the goods.

For settlement arrangement
under the fixed price settlement, the transaction price is generally fixed and does not contain any variable considerations such as sales
returns, discounts, or rebates, as the Company settles the sales with customers on a sales contract basis.

For settlement arrangement
under the variable price settlement, the transaction price is subject to variation and is determined based on the retailer’s monthly
sales. The pricing for individual game codes is calculated by considering their wholesale price and the quantity sold. Additionally,
a proportionate adjustment is made based on the total sales of each specific game code. As a result, the consideration received from
retailer can fluctuate, making it a variable component of the overall consideration.

The Company accounts for
revenue from sales of console game code under both settlement arrangements as mentioned above on a gross basis as the Company is acting
as a principal in these transactions and is responsible for fulfilling the promise to provide specified goods, of which the Company has
control and has the ability to direct the use to obtain substantially all the benefits.

In making this determination,
the Company assesses whether it is responsible to fulfil the performance obligation in these transactions, is subject to inventory risk,
has latitude in establishing prices, or has met several but not all of these indicators in accordance with ASC 606-10-55-36 through 40.
The Company determined that it is primarily responsible for fulfilling the promise to provide the specified good as the Company directly
purchases the consoled game code from the vendors prior to posting any sale to retailers or end users. Meanwhile, the Company maintained
the console game code electronically which demonstrates that Company has control over the goods and is subject to inventory risk. Furthermore,
the Company has discretion in establishing the price of the goods which has demonstrated that the Company has the ability to direct the
use of the goods and obtain substantially all of the benefits.

F-17 GCL GLOBAL HOLDINGS LTD AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Cost of revenue from sales of console game code
consist of cost of console game codes purchased from vendors.

| (3) | Revenue from game publishing |

The Company generates its
revenue from game publishing by providing a non-exclusive license to reproduce, publicly display and perform, transmit, sell,