Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 32

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 32
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% 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 certain of our customers who purchase on credit terms are no longer eligible to purchase
on such terms due to their financial distress or lack of credit insurance, which may reduce the quantity of products they demand from
us.

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Increased competition for limited shelf space and promotional support from retailers could affect the success of our business and require us to incur greater expenses to market our titles.

While digital sales are increasingly
important to our business, for physical sales, retailers have limited shelf space and promotional resources. Competition is intense among
newly introduced interactive entertainment software titles for adequate levels of shelf space and promotional support, with most and highest
quality shelf space devoted to those products expected to be best sellers. We cannot be certain that our new game products will consistently
achieve top seller status. Competition for retail shelf space is expected to continue to increase, which may require us to increase our
marketing expenditures to maintain desirable sales levels of our titles. Competitors with more extensive lines and more popular titles