Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 51

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 51
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 upon their expiration in a timely manner or at all, which could adversely affect our resellers’ business operations.

Risks Related to PubCo Operating as a Public Company

GCL Group’s management team has limited experience managing a public company.

The members of GCL Group’s
management team have limited or no experience managing a publicly-traded company, interacting with public company investors, and complying
with the increasingly complex laws, rules and regulations that govern public companies. There are significant obligations it will now
be subject to relating to reporting, procedures and internal controls, and the PubCo management team may not successfully or efficiently
manage its transition to being a public company. These new obligations and scrutiny will require significant attention from management
and could divert their attention away from the day-to-day management of GCL Group’s business, which could adversely affect its business,
financial condition and operating results.

If PubCo fails to implement and maintain an effective system of internal controls, PubCo may be unable to accurately report its results of operations, meets its reporting obligations or prevent fraud, and investor confidence and the market price of PubCo’s Ordinary Shares may be materially and adversely affected.

PubCo is subject to the Sarbanes-Oxley
Act of 2002. Section 404 of the Sarbanes-Oxley Act, or Section 404, requires that PubCo include a report from management on
the effectiveness of PubCo’s internal control over financial reporting in PubCo’s annual report on Form 20-F beginning with
PubCo’s annual report in PubCo’s second annual report on Form 20-F after becoming a public company. In addition, once PubCo
ceases to be an “emerging growth company” as such term is defined in the JOBS Act, PubCo’s independent registered public
accounting firm must attest to and report on the effectiveness of PubCo’s internal control over financial reporting. Moreover, even
if PubCo’s management concludes that PubCo’s internal control over financial reporting is effective, PubCo’s independent
registered public accounting firm, after conducting its own independent testing, may issue an adverse opinion on the effectiveness of
internal control over financial reporting if it is not satisfied with PubCo’s internal controls or the level at which PubCo’s
controls are documented, designed, operated or reviewed, or if it interprets the relevant requirements differently from PubCo. In addition,
PubCo’s reporting obligations will place a significant strain on PubCo’s management, operational and financial resources and
systems for the