Company: DKI
Filing Date: 2025-08-11
Form Type: 424B4
Source: 0001641172-25-022921
Chunk: 221

Company: DarkIris Inc.
Filing Date: 2025-08-11
Form: 424B4
Chunk 221
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 assets attributable to different tax jurisdictions are not offset. Components of deferred tax assets and liabilities were as follows:

| Deferred tax assets:                      |     | As of     
 March 31, 
 2025      | (unaudited) |   |     | As of         
 September 30, 
 2024          |          |   |
|:------------------------------------------|:----|:----------|------------:|:--|:----|:--------------|---------:|:--|
| Net operating loss carryforwards          |     | $         |     777,926 |   |     | $             |  964,969 |   |
| Valuation allowance on net operating loss |     |           |    (777,926 | ) |     |               | (964,969 | ) |
| Total                                     |     |           |           - |   |     |               |        - |   |

The Company’s PRC subsidiary had cumulative net operating loss of approximately $3.1 million and $3.9 million as of March 31, 2025 and September 30, 2024, respectively, which may be available for reducing future taxable income.

As of each reporting date, management considers evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. On the basis of this evaluation, valuation allowance of $0.8 and $1.0 million was recorded against the gross deferred tax asset balance as of March 31, 2025 and September 30, 2024, 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       
 March 31,   
 2025        
 (unaudited) |          |   |     | As of         
 September 30, 
 2024          |         |
|:---------------------------------------------------|:----|:------------|---------:|:--|:----|:--------------|--------:|
| Beginning balance                                  |     | $           |  964,969 |   |     | $             | 826,563 |
| Change of valuation allowance                      |     |             | (155,152 | ) |     |               | 102,878 |
| Effect of foreign currency translation adjustments |     |             |  (31,891 | ) |