Company: DKI
Filing Date: 2025-08-11
Form Type: 424B4
Source: 0001641172-25-022921
Chunk: 214

Company: DarkIris Inc.
Filing Date: 2025-08-11
Form: 424B4
Chunk 214
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 offers certain software products via third-party digital storefronts, such as the Apple App Store and the Google Play Store. For sales of software products via third-party digital storefronts and retail distributor, the Company determines whether or not the Company is acting as the principal in the sale to the end user, which the Company considers in determining if revenue should be reported based on the gross transaction price to the end user or based on the transaction price net of fees retained by the third-party digital storefront. An entity is the principal if it controls a good or service before it is transferred to the customer. Key indicators that the Company uses in evaluating these sales transactions include, but are not limited to, the following:

| ● | The                                                                                                     
 underlying contract terms and conditions between the various parties to the transaction;                |
| ● | Which                                                                                                   
 party is primarily responsible for fulfilling the promise to provide the specified good or service; and |
| ● | Which                                                                                                   
 party has discretion in establishing the price for the specified good or service.                       |

Based on evaluation of the above indicators, for sales arrangements via the Apple App Store, the Google Play Store, and other third party digital platforms, the Company has discretion in establishing the price for the specified good or service and the Company determined that the Company is the principal to the end user and thus report revenue on a gross basis and mobile platform fees charged by these digital storefronts are expensed as incurred and reported within cost of revenues.

For the six months ended March 31, 2025 and 2024, there was no revenue recognized on a net basis where the Company is acting as an agent.

| F-11 |

Contract balances and remaining performance obligations

Contract balances typically arise when a difference in timing between the transfer of control to the customer and receipt of consideration occurs.

The Company’s contract liabilities include unused in-game credit of $790,730 and $665,471, and game revenue sharing of $38,968 and $40,330 from distribution as of March 31, 2025 and September 30, 2024, respectively, consist primarily of the unsatisfied performance obligations as of the balance sheet dates. For the six months ended March 31, 2025 and 2024, $705,801 and $328,914 were recognized in revenue, respectively.

Segment reporting

An operating segment is a component of the Company that engages in business activities from which it may earn revenue and incur expenses and is identified on the basis of the internal financial reports that are provided to