Company: DKI
Filing Date: 2025-08-11
Form Type: 424B4
Source: 0001641172-25-022921
Chunk: 105

Company: DarkIris Inc.
Filing Date: 2025-08-11
Form: 424B4
Chunk 105
---
and promotional expenses. Selling expenses decreased by approximately $1.7 million, or 62.1%, to approximately $1.0 million in FY2024
from approximately $2.7 million in FY2023. The main sources of revenue growth in the FY2024 were from two gaming platforms, which have
more targeted gamers and did not require additional advertising, the Company could therefore reduce spending on advertising and promotional
expenses with these gaming platforms. Platforms such as Apple and Google are comprehensive platforms that require advertising expenses
to acquire gamers.

| 54 |

General and administrative expenses

General and administrative expenses
decreased by approximately $0.1 million, or 11.7%, to approximately $0.82 million in FY2024 from approximately $0.92 million in
FY2023. The decrease was mainly attributable to the decrease in employees’ salaries and benefits as a result of reduction in
headcount from 34 employees in FY2023 to 24 employees in FY2024. In addition, the Company has been collaborating with third parties
to maintain gameplayers, reducing the need for back office maintenance personnel.

Other income (expenses)

Other income (expenses) mainly related to
bank charges, foreign exchange losses and other miscellaneous income. Other income increased by $38,711, or 2,369.1%, to other
income of $37,077 in FY2024 from other expenses of $1,634 in FY2023. The increase was mainly attributable to singular instance of
marketing and promotion services provided to a customer.

Income tax expenses

In FY2024 and FY2023, our income tax expense
was $98,158 and nil, respectively. The income tax expenses were as a result of taxable income from operations.

Net income

As a result of the foregoing, net income was
approximately $1.1 million in FY2024, an increase of approximately $2.4 million from net loss of approximately $1.3 million in FY2023.

Liquidity and Capital Resources

As of September 30, 2024, the Company had
cash of approximately $0.3 million.

In assessing liquidity, management monitors
and analyzes our cash on-hand, ability to generate sufficient revenue sources in the future, and operating and capital expenditure commitments.

As of September 30, 2024, the Company had
working capital of approximately $0.9 million. The Company’s working capital requirements are influenced by the level of operations,
revenue generated from