Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 16

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 3
Chunk 16
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 We may also be required
to recognize non-cash expenses in connection with certain securities we issue, such as convertible notes and warrants, which may adversely
impact our financial condition.

We are or may be subject to contractual
covenants which place certain limitations on how we manage our business.

Certain credit agreements
we have with banks (the “Credit Agreement”) may limit our ability to take various actions, including incurring
additional debt, paying dividends, repurchasing shares, and acquiring or disposing of assets or businesses. Accordingly, we may be restricted
from taking actions that management believes would be desirable and in the best interests of us and our shareholders. Our Credit Agreement
also requires us to satisfy specified financial covenants and comply with other affirmative and negative covenants. A breach of any of
the covenants contained in our Credit Agreement could result in an event of default, which would allow our lenders to pursue various remedies,
including accelerating the repayment of any outstanding indebtedness under our Credit Agreement.

Risks Related to the Company’s International
Operations, Legal and Regulatory Matters

Our business is subject to numerous legal
and regulatory risks that could have an adverse impact on our business and prospects.

We currently operate in
the large, diverse and complex Asia, Brazil, the U. K. and the UAE. We are subject to various regulations in each of the
jurisdictions in which we operate.

Focus areas of regulatory
risk that we are exposed to include, among others: (i) evolution of laws and regulations applicable to game distribution and video game
development, (ii) various forms of data regulation such as data localization, data portability, cybersecurity and advertising or marketing,
(iii) antitrust regulations, (iv) foreign ownership restrictions, (v) artificial intelligence regulation and (vi) regulations regarding
the provision of online services, including with respect to the internet, mobile devices and e-commerce.

In addition, we may not be
able to obtain all the licenses, permits and approvals that may be necessary to provide our game publishing and those we plan to publish.
Because the gaming industry, in which we operate and which includes gaming devices technology, continues to develop, the relevant laws
and regulations, are always evolving in certain jurisdictions and their interpretations may be unclear. This can make it difficult for
us to assess which licenses and approvals are necessary for our business, or the processes for obtaining such licenses in certain jurisdictions.
For these reasons, we also cannot be certain that we will be able to maintain the