Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 241

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 241
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 losses rather than incurred losses. Under the new accounting guidance, the Company measures credit losses on its other
receivables using the current expected credit loss model under ASC 326. As of March 31, 2024 and 2023, the Company provided allowance
for credit loss of $52,949 and $3,747, respectively.

Prepayments are mainly cash deposited or advanced
to suppliers for future inventory purchases. These amounts are refundable if the purchases are not completed and bear no interest. For
any prepayments determined by management that such advances will not be in receipts of inventories, services, or refundable, the Company
will recognize an allowance account to reserve such balances. Management regularly reviews the aging of such balances and changes in payment
and realization trends and records allowances when management believes collection or realization of amounts due are at risk. Delinquent
account balances are written-off against allowance after management has determined that the likelihood of completion or collection is
not probable. As of March 31, 2024 and 2023, the Company provided allowance related to prepayment of $209,412 and $51,755, respectively.

Property and equipment are stated at cost less accumulated
depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with no residual value.
The estimated useful lives are as follows:

|                                 |     | Expected useful lives                |
| Office equipment                |     | 3 years                              |
| Furniture & fitting             |     | 3 years                              |
| Office and warehouse renovation |     | Shorter of the lease term or 3 years |

The cost and related accumulated depreciation of
assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of operation
and comprehensive loss. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments,
which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to
determine whether subsequent events and circumstances warrant revised estimates of useful lives.

The Company’s indefinite-lived intangible
assets consisted of the console game codes. The console game codes represent sequences of code providing users with access to specific
video games. Acquired from vendors in batches, their primary purpose is for resale. Each console game code grants single access right
to the user and is individually identified at cost upon purchase from its vendor.

Each console game code is