Company: GCL
Filing Date: 2025-07-31
Form Type: 424B3
Source: 0001213900-25-070094
Chunk: 15

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 424B3
Chunk 15
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 conditions. Our development payments may not be sufficient to permit developers to develop
new software successfully, which could result in material delays and significant increases in our costs to bring particular products to
market. Software development costs, promotion and marketing expenses and royalties payable to software developers and third-party licensors
have continued to increase and reduce our profit margin. Future sales of our titles may not be sufficient to recover development payments
and advances to software developers and licensors, and we may not have adequate financial and other resources to satisfy our contractual
commitments to such developers. If we fail to satisfy our obligations under agreements with third-party developers and licensors, the
publishing agreements may be terminated or modified in ways that are burdensome to us and have a material adverse effect on our business,
financial condition, and operating results.

We have engaged, and expect to engage, third-party game development companies to co-develop, co-publish or operate certain games, and if they fail to perform as expected, our business may suffer.

We have in the past and expect
in the future to, engage third-party game development companies to co-develop or co-publish certain video games with us. For instance,
Atomic Heart, a game launched in February 2023, was co-published by us and Focus Entertainment, an international game studio backed
by Chinese multinational conglomerate, Tencent Interactive Entertainment (“Tencent”), and an independent European
video game developer and publisher. We also co-published S.T.A.L.K.E.R. 2: Heart of Chornobyl in November 2024 and JDM: Japanese Drift Master in May 2025. We typically have limited control over the work performed by the development company and are therefore subject
to additional risks than if our own employees were developing and operating our games, such that completion of our games and their publication
could be delayed due to the development company’s failure to adhere to our milestones and roadmaps, or political or other risks
in the foreign country in which the development company operates. If our third-party game development companies fail to complete development
milestones in accordance with our game development roadmap, or do not perform in accordance with our agreements with them, it could adversely
affect the development of our games that are the subject of that agreement, including delaying their availability for launch and their
performance once launched, which could materially and adversely impact our ability to meet our forecasts.

Once a co-published game
is launched, we will be reliant on the development company’s ability to maintain an adequate number of