Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 160

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 160
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 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 customer in advance for future sales.

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Investing activities

Net cash used in investing
activities was approximately $6.3 million for the year ended March 31, 2025 and was attributable to approximately $0.2 million in cash
used in purchase of equipment, approximately $0.4 million payment related to achievement of tranche 3 of the contingent consideration
in connection with the 2Game acquisition, approximately $0.4 million loan to third party and approximately $5.4 million cash payment
in connection with investment in Nekcom Inc.

Net cash used in investing
activities was approximately $0.8 million for the year ended March 31, 2024 and was attributable to approximately $0.3 in cash used in
purchase of equipment and approximately $