Company: DKI
Filing Date: 2025-05-23
Form Type: DRS/A
Source: 0001641172-25-012167
Chunk: 94

Company: DarkIris Inc.
Filing Date: 2025-05-23
Form: DRS/A
Chunk 94
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 shareholders. If the Company
is unable to obtain additional equity or debt financing as required, the Company’s
business and prospects may suffer.

Indebtedness. As of September
30, 2024, the Company has approximately $0.2 million loans from a related party. Beside this indebtedness, the Company did not have any
debts, finance leases, purchase commitments, guarantees, or other material contingent liabilities.

| 49 |

Off-Balance Sheet Arrangements.The Company has not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties. In addition, the Company has not entered into any derivative contracts that are indexed to shares and classified as shareholders’ equity, or that are not reflected in our consolidated financial statements. Furthermore, the Company does not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. Moreover, the Company does not have any variable interest in any unconsolidated entity that provide financing, liquidity, market risk or credit support to or engages in hedging services with the Company.

Capital Resources.The primary drivers and material factors impacting liquidity and capital resources include ability to generate sufficient cash flows from operations and financial support from shareholders, as well as proceeds from equity and debt financing, to ensure future growth and expansion plans.

Working Capital.Total working capital as of September 30, 2024 amounted to approximately $0.9 million, compared to a negative $2.9 million approximately as of September 30, 2023. The increase in working capital was mainly caused by increase in cash and accounts receivable, and reduction of amount due to related parties.

Capital Needs.The Company’s capital needs include daily working capital needs and capital needs to finance the development of business. Management believes that income generated from current operations can satisfy daily working capital needs over the next 12 months. The Company may also raise additional capital through public offerings or private placements to finance business development and to consummate any merger or acquisition, if necessary.

We believe our current liquidity position, along with projected positive operating cash flows and a recent capital contribution of $0.57 million, provides a strong foundation to support our ongoing operations and strategic objectives. Our business has demonstrated stable cash generation capabilities, and we expect to remain cash-flow positive in the foreseeable future.

As our cash position improves, we intend to allocate additional resources to the continued development and enhancement of our game products. These investments will enable us to expand our content offerings