Company: DKI
Filing Date: 2025-05-23
Form Type: DRS/A
Source: 0001641172-25-012167
Chunk: 9

Company: DarkIris Inc.
Filing Date: 2025-05-23
Form: DRS/A
Chunk 9
---
 into law by President Biden, which contained, among other things, an identical provision to Accelerating Holding Foreign Companies Accountable Act and amended the HFCA Act by requiring the SEC to prohibit an issuer’s securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three, thus reducing the time before our Class A Ordinary Shares may be prohibited from trading or delisted. The delisting of our Class A Ordinary Shares, or the threat of their being delisted, may materially and adversely affect the value of your investment. See
“Risk Factors — Risks Related to Doing Business in Hong Kong and Mainland China —“Recent joint statement by the SEC and PCAOB, Nasdaq’s proposed rule changes and the HFCA Act all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB.”

DarkIris is incorporated in the Cayman Islands. As a holding company with no material operations of our own, we conduct substantially all of our operations in Hong Kong through our Hong Kong subsidiaries, Quantum and Stellar. Although other means are available for us to obtain financing at the holding company level, DarkIris’s ability to pay dividends to its shareholders and to service any debt it may incur may depend upon dividends paid by Quantum and Stellar.

As of the date of this prospectus, we have not made any transfers between the holding company and our subsidiaries, and none of our subsidiaries have ever issued any dividends or distribution to the holding company or their respective shareholders outside of Hong Kong or mainland China. There can be no assurance that the cash maintained in the PRC could be transferred out for the payment of dividends or the cash could be deployed into our business which shall be subject to the PRC regulations and policies.

Cash is expected to be transferred through our organization in the following manner: (i) funds are transferred to Quantum and Stellar, our Hong Kong operating entities, , from DarkIris in the form of capital contributions or shareholder loans, as the case may be; and (ii) dividends or other distributions may be paid by Quantum and Stellar to DarkIris. As of the date of this prospectus, we do not maintain cash management policies or procedures dictating the amount of such funding or how funds are transferred and have not made any transfers for both directions. To the extent cash in the business is in the PRC or in a PRC entity