Company: DKI
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001493152-25-010539
Chunk: 107

Company: DarkIris Inc.
Filing Date: 2025-03-17
Form: DRS
Chunk 107
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 year ended September 30, 2024, Immoral Fate generated $699,870 of revenue from in-game purchase and had total
gameplayers of 107,881 and MDV of 15,412.

In our licensing agreement
with the game developer of Immortal Fate, the game developer grants us exclusive rights to distribute, operate and promote Immortal Fate
on the IOS and Android systems in the agreed area, and we are not allowed to sublicense Immortal Fate to third parties or our own company.
During the term, we cooperate with the game developer to make the local language version of Immortal Fate, including updates, patches
and upgrades for such version. We are responsible for setting up game servers, marketing, in-game purchases, and development of online
payment channels within the specified region and bear the relevant costs. We pay an agency and copyright fee for the licensing, and share
the in-game purchase earnings with the game developer on a monthly basis as per our agreed ratio. The terms of the agreement lasts for
three years.

In-Game Purchase

All of our self-developed
or licensed games adopt the free-to-play model. Players looking to enrich their gaming experience have the option to acquire credits
through a variety of payment gateways, exchanging them for our in-game virtual items upon purchase. These virtual items are non-physical
items serve to elevate gaming experiences by empowering players to fortify their teams, accelerate progress, and personalize their in-game
personas. Such in-game purchase cannot be exchanged for real currency and have no monetary value outside our respective games.

We maintain a balanced gaming
pool by ensuring that both paying and non-paying players can enjoy our games without feeling discouraged. This approach preserves a fair
and engaging environment, fostering an inclusive and rewarding experience for all players.

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Virtual items available for
purchase are classified as either Consumable Virtual Items - items that provide immediate benefits or perform in-game actions upon use
(e.g., temporary power-ups or weapons); or Durable Virtual Items - items that offer long-term enhancements to a player’s character
or inventory (e.g., premium outfits or permanent upgrades).

The monetary value of the
virtual currencies sold and converted to the in-game tokens is shared between the Company and the game developer, if the game is licensed,
which is pre-determined in the individual revenue sharing arrangements. The Company’s pre-determined percentage share of such sales
varies by contracts and is generally between 40% and 85% of the total collected