Company: DKI
Filing Date: 2025-06-13
Form Type: F-1
Source: 0001641172-25-015001
Chunk: 244

Company: DarkIris Inc.
Filing Date: 2025-06-13
Form: F-1
Chunk 244
---
 negative, that could affect its view of the future realization of deferred tax assets. On the basis of this evaluation, valuation allowance of $1.0 million and $0.8 million was recorded against the gross deferred tax asset balance at September 30, 2024 and 2023, respectively. The amount of the deferred tax asset is considered unrealizable because it is more likely than not that the Company will not generate sufficient future taxable income to utilize this portion of the net operating loss.

Movement of valuation allowance was as follows:

|                                                    |     | As of 
 2024  | September 30, |     | As of 
 2023  | September 30, |   |
|:---------------------------------------------------|:----|:------|--------------:|:----|:------|--------------:|:--|
| Beginning of the financial year                    |     | $     |       826,563 |     | $     |       608,464 |   |
| Change of valuation allowance                      |     |       |       102,878 |     |       |       241,348 |   |
| Effect of foreign currency translation adjustments |     |       |        35,528 |     |       |       (23,249 | ) |
| End of the financial year                          |     | $     |       964,969 |     | $     |       826,563 |   |

Uncertain tax positions

The PRC tax authorities conduct periodic and ad hoc tax filing reviews on business enterprises operating in mainland China after those enterprises complete their relevant tax filings. In general, the PRC tax authorities have up to five years to conduct examinations of the tax filings of the Company’s mainland China entity. It is therefore uncertain as to whether the PRC tax authorities may take different views about the Company’s tax filings, which may lead to additional tax liabilities.

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of September 30, 2024 and 2023, the Company did not have any significant unrecognized uncertain tax positions.

| F-37 |

Note 8. Equity

Ordinary Shares

On May 31, 2024, the authorized share capital of the Company is $50,000 divided into 50,000 ordinary shares of par value $1 each.

On May 31, 2024, the Company issued 50,000 ordinary