Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 312

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 312
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ers have the 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 have accepted the goods. Revenue is recognized net of estimates of variable consideration,
including product returns, and customer discounts. Historically, the product return was immaterial.

The
Company determined that the shipping and handling activities are performed before the customer obtains control of the good. The Company
elects to account for shipping and handling as activities to fulfill the promise 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