Company: GCL
Filing Date: 2025-07-31
Form Type: 424B3
Source: 0001213900-25-070094
Chunk: 123

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 424B3
Chunk 123
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.0 million net loss, (B) approximately $0.7 million increases
in deferred tax benefit as we have more net operating loss that can be utilized for offset taxable income, (C) approximately $0.7 million
increase in accounts receivable as a result of increase in our revenue, (D) approximately $1.6 million increase in inventories as we maintain
higher inventory level to meet with the demand, (E) approximately $3.4 million increase in prepayment to our vendors as we made more advance
payments to vendors to secure our purchases, and (F) approximately $0.8 million decrease in operating lease liability as we remit timely
payment in accordance with lease contract during the period.

Net cash used in operating
activities was approximately $4.4 million for the year ended March 31, 2023. The net cash used in operating activities was primarily attributable
to (i) approximately $8.5 million increase in accounts receivable, as a result of increase in our revenue, (ii) approximately $7.9 million
increase in indefinite-lived intangible assets as we as we maintain more console game code for resale, (iii) approximately $0.6 million
increase in receivables and other current assets due to payment of advertising fees on behalf of a vendor, (iv) approximately $0.7 million
decrease of operating lease liabilities as we remit timely payment in accordance with lease contract during the period, (v) approximately
$0.4 million increase in inventories, as we maintained more inventories for resale due to demand of our products, and (vi) approximately
$0.3 million non-cash item of deferred tax benefit, offset by (A) net income of approximately $2.1 million, (B) approximately $3.1 million
of non-cash items such as deprecation of property and equipment, amortization of intangible assets, amortization of right of use assets,
provision for doubtful accounts, change in fair value of acquisition payable and impairment of the inventories, (C) approximately $22.1
million increase in accounts payable, as our third party and related party vendors granted us credit terms to allow us additional time
to pay for our purchases, (D) approximately $0.5 million increase in tax payables as we incurred more taxable income subject
to income tax, and (E) approximately $0.3 million increase in contract liabilities, as we collected more deposit from our