Company: DKI
Filing Date: 2025-05-23
Form Type: DRS/A
Source: 0001641172-25-012167
Chunk: 199

Company: DarkIris Inc.
Filing Date: 2025-05-23
Form: DRS/A
Chunk 199
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 lease classification for any expired or existing leases as of the adoption date, and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company elected the short-term lease exemption for the lease terms that are 12 months or less.

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange of a consideration. To assess whether a contract is or contains a lease, the Company assesses whether the contract involves the use of an identified asset, whether it has the right to obtain substantially all the economic benefits from the use of the asset and whether it has the right to control the use of the asset. The right-of-use assets and related lease liabilities are recognized at the lease commencement date. The Company recognizes operating lease expenses on a straight-line basis over the lease term and had no finance leases for any of the periods stated herein.

The right-of-use of asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and less any lease incentive received. All right-of-use assets are reviewed for impairment annually. There was no impairment for right-of-use lease assets as of September 30, 2024 and 2023.

| F-9 |

Fair value measurement

The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company.

The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow:

| ● | Level                                                                                                                                    
 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.              |
| ● | Level                                                                                                                                    
 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that        
 are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. |
| ● | Level                                                                                                                                    
 3 inputs to the valuation methodology are unobservable and significant to the fair value. Unobservable inputs reflect the reporting      
 entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the            
 best available information.                                                                                                              |

ASC