Company: GCL
Filing Date: 2025-07-31
Form Type: 424B3
Source: 0001213900-25-070094
Chunk: 35

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 424B3
Chunk 35
---
 knowledge of GAAP and SEC reporting and compliance requirements to design and implement formal period-end
financial reporting policies and procedures to address complex technical accounting issue in accordance with GAAP and the SEC requirements.,
and (ii) lack of information technology general controls in the areas of IT policies and procedures, user provisioning and termination,
privileged access and service organization monitoring who are responsible for change management over certain core business system and
accounting system. To remediate the material weaknesses, the Company has begun, and will continue, to (A) hire additional finance and
accounting staff with qualifications and work experience in GAAP and SEC reporting requirements to formalize the key internal control
over financial reporting; (B) allocate sufficient resources to prepare and review financial statements and related disclosures in accordance
with GAAP and SEC reporting requirements; and (C) hire experienced IT staff with qualifications of the CRISC (“Certified in Risk
and Information Systems Control”) to formalize and strengthen the key internal control over Information Technology General Control.
In addition, GCL cannot predict the outcome of this determination and whether GCL will need to implement remedial actions in order to
implement effective control over financial reporting. If in subsequent years GCL is unable to assert that GCL’s internal control
over financial reporting is effective, or if GCL’s auditors express an opinion that GCL’s internal control over financial
reporting is ineffective, GCL may fail to meet the future reporting obligations in a timely and reliable manner and its financial statements
may contain material misstatements. Any such failure could also adversely cause GCL’s investors to have less confidence in the accuracy
and completeness of its financial reports, which could have a material adverse effect on the price of GCL’s securities.

If GCL ceases to qualify as a foreign private issuer, it would be required to comply fully with the reporting requirements of the Exchange Act applicable to U.S. domestic issuers, and it would incur significant additional legal, accounting, and other expenses that it would not incur as a foreign private issuer.

As a foreign private issuer,
GCL will be exempt from the rules under the Exchange Act prescribing the furnishing and content of proxy statements, and its officers,
directors, and principal shareholders will be exempt from the reporting and short-swing profit recovery provisions contained in Section
16 of the Exchange Act. In addition, it will not be required under the Exchange Act to file periodic reports and financial statements
with the SEC as frequently or as promptly as United States domestic issuers, and