Company: DKI
Filing Date: 2025-06-13
Form Type: F-1
Source: 0001641172-25-015001
Chunk: 221

Company: DarkIris Inc.
Filing Date: 2025-06-13
Form: F-1
Chunk 221
---
 $0.0001 each. The currently issued 50,000 ordinary shares of par value of $0.0001 each in the Company be and are re-designated and re-classified into 32,970 Class A ordinary shares of par value $0.0001 each with 1 vote per share or 17,030 Class B ordinary shares of par value $0.0001 each with 20 votes per share.

On June 10, 2025, the Company allotted and issued an aggregate of 10,517,430 Class A ordinary shares and 5,432,570 Class B ordinary shares of the Company, par value of $0.0001 each respectively, and to all existing shareholders on a pro-rata basis (Issuance). Immediately after the completion of the Issuance, Class A and Class B ordinary shares were 10,550,400 and 5,449,600, respectively. The aforementioned Issuance were considered nominal issuance, and were recapitalizations in substance. In applying the requirements of FASB ASC Topic 260, nominal issuances of ordinary shares should be reflected in a manner similar to a share split or share dividend for which retroactive treatment is required by FASB ASC paragraph 260-10-55-12.

Statutory reserve

The Company’s PRC subsidiary is required to make appropriations to reserve funds, comprising the statutory surplus reserve and discretionary surplus reserve, based on after-tax net income determined in accordance with PRC GAAP.

Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entities’ registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. As of March 31, 2025 and September 30, 2024, the balance of the required statutory reserves was nil and nil, respectively.

Note 10. Restricted assets

The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiary. Relevant PRC statutory laws and regulations permit payments of dividends by the PRC subsidiaries only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the accompanying consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the PRC entities.

The PRC entities are required