Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 48

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 48
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 experience adverse publicity arising from
such non-compliance with government regulations that negatively impacts its brand. Our resellers may experience difficulties or failures
in obtaining the necessary approvals, licenses, and permits for new spaces or new service offerings. If our resellers fail to obtain
the material licenses, our game offerings and business activities could be severely delayed in the PRC market. In addition, there can
be no assurance that our resellers will be able to obtain, renew, and/or convert all of the approvals, licenses, and permits required
for its existing business operations upon their expiration in a timely manner or at all, which could adversely affect our resellers’
business operations.

Risks Related to GCL Operating as a Public Company

GCL Group’s management team has limited experience managing a public company.

The members of GCL Group’s
management team have limited or no experience managing a publicly-traded company, interacting with public company investors, and complying
with the increasingly complex laws, rules and regulations that govern public companies. There are significant obligations it will now
be subject to relating to reporting, procedures and internal controls, and the GCL management team may not successfully or efficiently
manage its transition to being a public company. These new obligations and scrutiny will require significant attention from management
and could divert their attention away from the day-to-day management of GCL Group’s business, which could adversely affect its
business, financial condition and operating results.

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In connection with the preparation of the Company’s consolidated financial statements for fiscal years 2025, the Company identified material weaknesses in its internal control over financial reporting, as defined in the standards established by the PCAOB. Failure to maintain effective internal controls over financial reporting could have a material adverse effect on GCL’s business, operating results and stock price.

The Company is a publicly
listed company. 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 GCL 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