Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 112

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 4A
Chunk 112
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      $                                   17,044,978      $           502,131      $           (649,884  

Operating activities

Net cash used in operating
activities was approximately $10.3 million for the year ended March 31, 2025. The net cash used in operating activities was primarily
attributable to (i) approximately $6.6 million increase in accounts receivable, as a result of increase in our revenue, (ii) approximately
$7.5 million increase in indefinite-lived intangible assets as we as we maintain more console game code for resale, (iii) approximately
$1.1 million increase in other receivables and other current assets due to payment of advertising fees on behalf of a vendor and other
prepaid expenses such as D& O insurance, (iv) approximately $0.9 million decrease of operating lease liabilities as we remit timely
payment in accordance with lease contract during the period, (v) approximately $1.0 million increase in inventories, as we maintained
more inventories for resale due to demand of our products, (vi) approximately $3.6 million increase in prepayment to our vendors and related
party as we made more advance payments to vendors to secure our purchases approximately, (vii) approximately $11.9 million decrease in
other payables and accrued liabilities as make timely payments for accrued expense, (viii) approximately $2.0 million decrease in account
payable, a related party, as we made timely payment to related party for purchasing, and (ix) approximately $4.7 million non-cash item
of recovery from credit loss, deferred tax benefit, and change in fair value of convertible notes and derivative liabilities, offset by
(A) net income of approximately $5.0 million, (B) approximately $2.9 million of non-cash items such as deprecation of property and equipment,
amortization of intangible assets, amortization of right of use assets, and change in fair value of acquisition payable, (C) approximately
$21.0 million increase in accounts payable, as our third party granted us credit terms to allow us additional liquidity and flexibility
in managing short-term cash flow needs

Net cash provided by operating
activities was approximately $1.3 million for the year ended March 31, 2024. The net cash provided by operating activities was primarily
attributable to (i) approximately $3.2 million in non-cash items which included depreciation expense