Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 311

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 311
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 performance obligation in these transactions,
is subject to inventory risk, has latitude in establishing prices, or has met several but not all of these indicators in accordance with
ASC 606-10-55-36 through 40. The Company determined that it is primarily responsible for fulfilling the promise to provide the specified
good as the Company directly purchases the consoled game code from the vendors prior to posting any sale to retailers or end users. Meanwhile,
the Company maintained the console game code electronically which demonstrates that Company has control over the goods and is subject
to inventory risk. Furthermore, the Company has discretion in establishing the price of the goods which has demonstrated that the Company
has the ability to direct the use of the goods and obtain substantially all of the benefits.

Cost
of revenue from sales of console game code consist of cost of console game codes purchased from vendors.

| (3) | Revenue from game publishing |

The
Company generates its revenue from game publishing by providing a non-exclusive license to reproduce, publicly display and perform, transmit,
sell, license and otherwise distribute the PC games in object code form (“console game code”) to gaming platforms such as
Sony’s PlayStation Network, Valve’s Steam, and Microsoft’s Xbox for distribution. In these sales arrangements, the
gaming platforms are considered as the Company’s customers.

The
Company recognizes revenue from game publishing at the point in time when control of the console game code is transferred to the Gaming
Platform, which specifically occurs when the console game code is activated. Since the transaction price for publishing varies and is
determined based on a predetermined rate applied to the Gaming Platform’s monthly sales, the Company recognizes revenue based on the
consideration expected to be received from the Gaming Platform.

The
Company accounts for revenue from game publishing on a gross basis as the Company is acting as a principal who is primarily responsible
for fulfilling the promise to publishing the game on the Gaming platform.

Cost
of revenue from game publishing consist of game developing cost from developers.

| (4) | Video marketing campaign services |

The
Company provides video marketing campaign services, which include video production, content alteration based on the customer’s
specifications, and video publishing on designated influencers’ social media platforms. The Company identifies video marketing
campaign services as a single performance obligation because the services in the contract cannot be distinct.

The
customer cannot simultaneously receive and consume the benefits provided by the Company throughout the performance obligation process,
and the customer does not have control on the video content as it is produced. Therefore,