Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 55

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 55
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 non-affiliates exceeds $700 million as of the end of its last fiscal year, and (2) the date on which PubCo has issued more
than $1.0 billion in non-convertible debt during the prior three-year period.

PubCo cannot predict if investors
will find its ordinary shares less attractive because it will rely on the accommodations and exemptions available to emerging growth companies.
If some investors find PubCo Ordinary Shares less attractive as a result, there may be a less active trading market for PubCo Ordinary
Shares and PubCo’s share price may be more volatile.

Failure to maintain effective internal controls over financial reporting could have a material adverse effect on PubCo’s business, operating results and stock price.

Prior to the consummation of
the Business Combination, the Company is neither a publicly listed company, nor an affiliate of a publicly listed company, and has not
dedicated accounting personnel and other resources to address internal control and other procedures commensurate with those of a publicly
listed company. Effective internal control over financial reporting is necessary to increase the reliability of financial reports.

The standards required for
a public company under Section 404(a) of the Sarbanes-Oxley Act are significantly more stringent than those required of the Company
as a privately held company. Management may not be able to effectively and timely implement controls and procedures that adequately respond
to the increased regulatory compliance and reporting requirements that will be applicable after the Business Combination. If PubCo is
not able to implement the additional requirements of Section 404(a) of the Sarbanes-Oxley Act in a timely manner or with adequate
compliance, it may not be able to assess whether its internal controls over financial reporting are effective, which may subject it to
adverse regulatory consequences and could harm investor confidence and the market price of PubCo ordinary shares.

Prior to the Business Combination,
neither the Company nor its auditors were required to perform an evaluation of internal control over financial reporting as of March 31,
2024 and 2023 in accordance with the provisions of the Sarbanes-Oxley Act as it was a private company. In connection with the preparation
of the Company’s consolidated financial statements for fiscal years 2024 and 2023, the Company identified material weaknesses in
its internal control over financial reporting, as defined in the standards established by the PCAOB. The material weakness identified
related to (i) lack of accounting staff and resources with appropriate knowledge of accounting principles generally accepted in the U.S