Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 39

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 39
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 actions, including, but not limited to, potential fines, orders to
temporarily or permanently cease all or some of our business activities. Any such actions could materially and adversely affect our business,
financial condition, results of operations and prospects.

Our international operations are, and our strategy to expand internationally will be, subject to increased challenges and risks.

Continuing to expand our business
to attract gamers outside of Asia is an important element of our business strategy. An important part of targeting international markets
is developing offerings that are localized and customized for the gamers in those markets. Our ability to expand our business and to attract
gamers and talented employees in other international markets we may enter will require considerable management attention and resources
and is subject to the particular challenges of supporting a rapidly growing business in an environment of multiple languages, cultures,
customs, economics, legal systems, alternative dispute systems, regulatory systems, and commercial infrastructures.

Expanding our international
focus may subject us to risks that we have not faced before or increase risks that we currently face, including risks associated with:

| ● | inability to offer certain games in certain foreign countries; |

| ● | recruiting and retaining talented and capable management and employees in foreign countries; |

| ● | challenges caused by distance, language, and cultural differences; |

| ● | developing and customizing games and other offerings that appeal to the tastes and preferences of gamers 
 in international markets;                                                                                |

| ● | competition from local game makers with intellectual property rights and significant market share in those 
 markets and with a better understanding of gamer preferences;                                              |

| ● | obtaining, utilizing, protecting, defending, and enforcing our intellectual property rights; |

| ● | negotiating agreements with local distribution platforms that are sufficiently economically beneficial 
 to us and protective of our rights;                                                                    |

| ● | the inability to extend proprietary rights in our brand, content, or technology into new jurisdictions; |

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| ● | compliance with applicable foreign laws and regulations, including laws relating to content and consumer 
 protection;                                                                                              |

| ● | compliance with anti-bribery laws, including the Foreign Corrupt Practices Act; |

| ● | credit risk and higher levels of payment fraud; |

| ● | currency exchange rate fluctuations; |

| ● | protectionist laws and business practices that favor local businesses in some countries; |

| ● | double taxation of our international earnings and potentially adverse tax consequences due to changes 
 in the tax laws of the U.S. or the foreign jurisdictions in which