Company: DKI
Filing Date: 2025-08-11
Form Type: 424B4
Source: 0001641172-25-022921
Chunk: 92

Company: DarkIris Inc.
Filing Date: 2025-08-11
Form: 424B4
Chunk 92
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 period of last year. The increase was mainly attributed to the increased gamers spending which resulted in increase in game revenue, revenue sharing with game developers were correspondingly increased.

Cloud server costs

Cloud server costs decreased by $28,498, or 41.0%, to approximately $0.04 million for the six months ended March 31, 2025 from approximately $0.07 million for the same period of last year. Game revenue generated from Google and Apple digital platforms reduced which, in turn, reduced data requirements from cloud servers and the corresponding cloud server costs. Also, the decrease in cloud server costs was attributable to the provision of cloud servers by certain third party digital platforms and, as a result, the Company did not need to incur cloud server costs for certain games.

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Gross profit

Gross profit decreased by approximately $0.1 million, or 7.3%, to approximately $1.5 million for the six months ended March 31, 2025 from approximately $1.6 million for the same period of last year, while gross profit margin decreased by 26%, from 54% for the six months ended March 31, 2024 to 28% for the six months ended March 31, 2025. The decrease in gross profit margin was mainly attributable to the significant increase in platform handling fees and revenue sharing with game developers.

Selling expenses

Selling expenses primarily relate to advertising and promotional expenses. Selling expenses decreased by approximately $0.3 million, or 100%, to nil for the six months ended March 31, 2025 from approximately $0.3 million for the same period of last year. The main sources of revenue growth for the six months ended March 31, 2025 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.

General and administrative expenses

General and administrative expenses increased by approximately $16,055, or 3.7%, to approximately $0.45 million for the six months ended March 31, 2025 from approximately $0.43 million for the same period of last year. The increase was mainly attributable to expenses incurred in the preparation of initial public offering.

Other income (expenses)

Other income (expenses) mainly related to bank charges, foreign exchange losses and other miscellaneous income. Other income increased by