Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 312

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 312
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able at the option of the holders,
they are classified as mezzanine equity (temporary equity). As of September 30, 2024 and March 31, 2024, ordinary shares subject
to possible redemption are 53,711 shares as temporary equity, outside of the shareholders’ equity section of the Company’s
consolidated balance sheet. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value
of redeemable Common Stock to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying
amount of redeemable ordinary shares are affected by charges against additional paid-in capital or accumulated deficit if additional
paid-in capital equals to zero. On November 22, 2023, 115,000 ordinary shares were fully redeemed for cash consideration of $ 163,905.

The
Company follows the revenue accounting requirements of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from
Contracts with Customers (Topic 606) (“Accounting Standards Codification (“ASC”) 606”). The core principle underlying
the revenue recognition of this ASU allows the Company to recognize revenue that represents the transfer of goods and services to customers
in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This requires the Company
to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based
on when control of goods and services transfers to a customer.

<div align='center'>F-68

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

To
achieve that 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