Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 56

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 56
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GAAP and SEC reporting and compliance requirements to design and implement formal period-end financial reporting policies and procedures
to address complex technical accounting issue in accordance with GAAP and the SEC requirements, and (ii) lack of information technology
general controls in the areas of IT policies and procedures, user provisioning and termination, privileged access and service organization
monitoring who are responsible for change management over certain core business system and accounting system. To remediate the material
weaknesses, the Company has begun, and will continue, to (A) hire additional finance and accounting staff with qualifications and work
experience in GAAP and SEC reporting requirements to formalize the key internal control over financial reporting; (B) allocate sufficient
resources to prepare and review financial statements and related disclosures in accordance with GAAP and SEC reporting requirements; and
(C) hire experienced IT staff with qualifications of the CRISC (“Certified in Risk and Information Systems Control”) to formalize
and strengthen the key internal control over Information Technology General Control.

Following the Business Combination,
PubCo’s independent registered public accounting firm will not be required to report on the effectiveness of its internal control
over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002 until PubCo’s first Form 20-F following
the date on which it ceases to qualify as an “emerging growth company,” which may be up to five full fiscal years following
the date of the first sale of common equity securities pursuant to an effective registration statement. If such evaluation were performed,
control deficiencies could be identified by PubCo’s management, and those control deficiencies could also represent one or more
material weaknesses. In addition, PubCo cannot predict the outcome of this determination and whether PubCo will need to implement remedial
actions in order to implement effective control over financial reporting. If in subsequent years PubCo is unable to assert that PubCo’s
internal control over financial reporting is effective, or if PubCo’s auditors express an opinion that PubCo’s internal control
over financial reporting is ineffective, PubCo may fail to meet the future reporting obligations in a timely and reliable manner and its
financial statements may contain material misstatements. Any such failure could also adversely cause PubCo’s investors to have less
confidence in the accuracy and completeness of its financial reports, which could have a material adverse effect on the price of PubCo’s
securities.

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Risks Related to Our Securities

We cannot be