Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 29

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 29
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 degrade the gamer experience or increase our costs. As such, we could fail to continue to effectively scale and grow our
technical infrastructure to accommodate increased demands. In addition, our business may be subject to interruptions, delays or failures
resulting from adverse weather conditions, other natural disasters, power loss, terrorism, cyber-attacks, public health emergencies (including
the COVID-19 pandemic or other future health epidemics or contagious disease outbreaks), or other catastrophic events.

We believe that if our gamers
have a negative experience with our games, or if our brand or reputation is negatively affected, gamers may be less inclined to continue
or to engage with us. As such, a failure or significant interruption in our service would harm our reputation, business, and operating
results.

A limited number of customers account for a significant portion of our sales. The loss of a principal customer or other significant business relationship could seriously hurt our business.

For the fiscal year ended March 31,
2024, our biggest customer accounted for approximately 17% of our total revenue, with each of the next three biggest customers accounting
for more than 10% of our total revenue during the same period. During the fiscal year ended March 31, 2023, sales to our five biggest
customers accounted for almost half of our total consolidated revenue, with the top three customers accounting for approximately 13%,
11%, and 10% of our total revenue, respectively. Our sales are made primarily without long-term agreements or other commitments, and our
customers may terminate their relationship with us at any time. Certain of our customers may decline to carry products containing mature
content. The loss of our relationships with principal customers or a decline in sales to principal customers, could materially adversely
affect our business, financial condition, and operating results. In addition, if our customers are subject to pricing pressures due to
deteriorating demand for our products, competition, or otherwise, such customers may pass those pricing pressures through to us, which
could materially adversely affect our business, financial condition and operating results.

Furthermore, our customers
may also be placed into bankruptcy, become insolvent, or be liquidated due to economic downturns, global credit contractions, or other
factors. Bankruptcies or consolidations of certain large retail customers could seriously hurt our business, including as a result of
uncollectible accounts receivable from such customers and the concentration of purchasing power among large retailers. In addition, our
results of operations may be adversely affected if