Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 229

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 229
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 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 typically occurs at a point in
time based on consideration of when the retailers or 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