Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 232

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 232
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 core principle,
the Company applies five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify
the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction
price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate
the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company
satisfies the performance obligation.

The Company recognizes a
contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified,
the contract has commercial substance and collectability is probable.

Revenue recognition policies for each type of
revenue stream are as follows:

| (1) | Revenue from sales of console game, gaming hardware, and accessories |

The
Company generates revenue from distributing gaming content that are compatible with major
gaming consoles such as Sony PlayStation, Microsoft Xbox, and personal computers (“PC”)
to retailers. Additionally, the Company is involved in the sale of gaming hardware and accessories,
primarily consisting of controllers, adapters, headsets, gaming desks and chairs, etc.

<div align='center'>F-16

GCL GLOBAL HOLDINGS LTD AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

The Company recognized the
revenue from sales of console game, gaming hardware, and accessories at a point in time when control of the product is passed to the
retailers, generally after the retailers pick up the products or the Company delivers the products to the retailers’ appointed
forwarding agent, which is the point in time that the retailers are able to direct the use of and obtain substantially all of the economic
benefit of the goods. The transfer of control typically occurs at a point in time based on consideration of when the retailers have the
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 have accepted the goods. Revenue is recognized net of estimates of variable consideration, including
product returns, and customer discounts. Historically, the product return was immaterial.

The Company determined that
the shipping and handling activities are performed before the customer obtains control of the good. The Company elects to account for
shipping and handling as activities to fulfill the promise