Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 65

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 65
---
 being a public company may strain our resources, divert our management’s attention and affect our ability to attract and retain qualified board members.

As a public company, we are
subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, the Dodd-Frank Act, listing requirements of Nasdaq
and other applicable securities rules and regulations. As such, we have incurred and expect to continue to incur relevant legal, accounting
and other expenses, and these expenses may increase even more if we no longer qualify as an “emerging growth company,” as
defined in Section 2(a) of the Securities Act. The Exchange Act requires, among other things, that we file annual and current reports
with respect to our business and results of operations. The Sarbanes-Oxley Act requires, among other things, that we maintain effective
disclosure controls and procedures and internal control over financial reporting. We may need to hire more employees or engage outside
consultants to comply with these requirements, which will increase our costs and expenses.

Changing laws, regulations
and standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing legal and
financial compliance costs and making some activities more time-consuming. These laws, regulations and standards are subject to varying
interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time
as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters
and higher costs necessitated by ongoing revisions to disclosure and governance practices. These laws and regulations may increase our
legal and financial compliance costs and render our certain business activities more time-consuming and costly.

Members of our management team
have limited experience managing a publicly traded company, interacting with public company investors and complying with the increasingly
complex laws pertaining to public companies. Our management team may not successfully or efficiently manage the transition to being a
public company subject to significant regulatory oversight and reporting obligations under the federal securities laws and regulations
and the continuous scrutiny of securities analysts and investors. The need to establish the corporate infrastructure demanded of a public
company may divert the management’s attention from implementing our growth strategy, which could prevent the improvement of our
business, financial condition and results of operations. Furthermore, these rules and regulations may make it more difficult and more
expensive for us to obtain director and officer liability insurance, and consequently we may be required to incur substantial costs to
maintain the same or similar coverage.