Company: DKI
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001493152-25-010539
Chunk: 90

Company: DarkIris Inc.
Filing Date: 2025-03-17
Form: DRS
Chunk 90
---
   (18,119 | ) |     |     | (12.5 | )% |
| Stamp                              
 duty and value-added tax surcharge |     |               |       270 |     |   |        32 |     |          |       238 |   |     |     | 743.8 | %  |
| Total                              
 cost of revenues                   |     | $             | 4,912,281 |     | $ | 1,551,295 |     | $        | 3,360,986 |   |     |     | 216.7 | %  |

Platform handling fees

Platform handling fees increased by approximately
$2.7 million, or 356.0%, to approximately $3.5 million in FY2024 from $0.8 million in FY2023. The increase was primarily attributable
to the increase in third party digital platforms from two platforms in FY2023 to four platforms in FY2024. In FY2024, the Company engaged
with two new platforms which assist the Company to promote the games. Revenue generated from game players are shared between the platform
and the Company, typically ranging from 15% to 60%. These third party digital platforms has been successful in promoting the games, attracting
gamer to make in-game purchase and game revenues increased from approximately $3.9 million in FY2023 to approximately $7.9 million in
FY2024, resulting in a synchronous increase in revenue sharing with these platforms.

Revenue sharing with game developers

Revenue sharing with game developers increased
by approximately $0.63 million, or 99.5%, to approximately $1.27 million in FY2024 from approximately $0.64 million in FY2023. The increase
was mainly attributed to expansion in cooperation with game developers from six game developers in FY2023 to twelve game developers in
FY2024 with typical revenue sharing ranging from 10% to 20%. With the successful in promoting games by the above-mentioned third-party
digital platforms, increased in gamers spending, and increased in game revenue, revenue sharing with game developers were correspondingly
increased.

Cloud server costs

Cloud server costs decreased by $18,119, or
12.5%, to approximately $0.13 million in FY2024 from approximately $0.14 million in FY2023. The decrease in cloud server costs was primarily
attributable to the increase in using above-mentioned third party digital platforms. Certain third party