Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 233

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 233
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 to transfer the good, and accrue the related shipping cost.

Cost of revenue from sales
of console game, gaming hardware, and accessories consist of cost of purchase of console game compact discs, gaming hardware and accessories
from vendors.

| (2) | Revenue from sales of console game code |

The Company derives its
revenue from the sale of console game codes through the following settlement arrangement: (1) fixed price settlement with sales
price being predetermined in the contract, and (2) variable price settlement with sales price being variable and to be settled based
on retailer’s monthly sales.

The Company recognized the
revenue from sales of console game code at a point in time when control of the goods is passed to retailers or end users, generally after
the console game code was E-delivered to the retailers or end users, which is the point in time that the customers are able to direct
the use of and obtain substantially all of the economic benefit of the goods. The transfer of control typically occurs at a point in
time based on consideration of when the retailers or end users have an obligation to pay for the goods, and physical possession of, legal
title to, and the risks and rewards of ownership of the goods has been transferred, and the retailers or end users has accepted the goods.

For settlement arrangement
under the fixed price settlement, the transaction price is generally fixed and does not contain any variable considerations such as sales
returns, discounts, or rebates, as the Company settles the sales with customers on a sales contract basis.

For settlement arrangement
under the variable price settlement, the transaction price is subject to variation and is determined based on the retailer’s monthly
sales. The pricing for individual game codes is calculated by considering their wholesale price and the quantity sold. Additionally,
a proportionate adjustment is made based on the total sales of each specific game code. As a result, the consideration received from
retailer can fluctuate, making it a variable component of the overall consideration.

The Company accounts for
revenue from sales of console game code under both settlement arrangements as mentioned above on a gross basis as the Company is acting
as a principal in these transactions and is responsible for fulfilling the promise to provide specified goods, of which the Company has
control and has the ability to direct the use to obtain substantially all the benefits.

In making this determination,
the Company assesses whether it is responsible to fulfil the performance obligation in these transactions, is subject to inventory risk,
has latitude in establishing prices, or has met several