Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 313

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 313
---
 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 desk, chair and etc.

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 to transfer the good, and accrue the related shipping
cost.

Cost
of revenue from sales of console game, gaming hardware, and accessories consist of cost of purchase of console game compact discs, gaming
hardware and accessories from vendors.

| (2) | Revenue from sales of console game code |

The
Company derives its revenue from the sale of console game codes through the following settlement arrangement: (1) fixed price settlement
with sales price being predetermined in the contract, and (2) variable price settlement with sales price being variable and to be
settled based on retailer’s monthly sales.

The
Company recognized the revenue from sales of console game code at a point in time when control of the goods is passed to retailers or
end users, generally after the console game code was E-delivered to the retailers or end users, which is the point in time that the customers
are able to direct the use of and obtain substantially all of the economic benefit of the goods. The transfer of control