Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 376

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 376
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urchasing corporation
itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value
of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations
are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the
same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the “Treasury”)
has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax.
Any redemption or other repurchase that occurs after December 31, 2023, in connection with a Business Combination, extension vote or otherwise,
may be subject to the excise tax. Whether and to what extent the Company would be subject to the excise tax in connection with a Business
Combination, extension vote or otherwise would depend on a number of factors, including (i) the fair market value of the redemptions and
repurchases in connection with the Business Combination, extension or otherwise, (ii) the structure of a Business Combination, (iii) the
nature and amount of any “PIPE” or other equity issuances in connection with a Business Combination (or otherwise issued not
in connection with a Business Combination but issued within the same taxable year of a Business Combination) and (iv) the content of regulations
and other guidance from the Treasury.

On June 28, 2024, the Internal
Revenue Service issued final regulations with respect to the timing and payment of the Excise Tax. Pursuant to those regulations, the
Company would need to file a return and remit payment for any liability incurred during the period from January 1, 2023 to December 31,
2023 on or before October 31, 2024. Additionally, the Company will need to remit payment and file a return for the liability incurred
between January 1, 2024 through December 31, 2024 on or before October 31, 2025.

<div align='center'>F-108</div>

The Company is currently evaluating
its options with respect to payment of this obligation. If the Company is unable to pay its obligation in full, it will be subject to
additional interest and penalties which are currently estimated at 10% interest per annum and a